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Republican 
Campaign Text-Book 

1904 



ISSUED BY THE 

REPUBLICAN NATIONAL COMMITTEE 



PRESS OF THE EVENING WISCONSIN CO. 

366-368-370 Milwaukee Street, 

130-132-134-136 Michigan Street 

Milwaukee, Wis. 



it outline of contents. 

Paoh. 

Things for which the Republican party stands 329 

Republican legislation, 1860 to 1904 ;tt2 

Laws enacted by the Republican party 888 

Work of the Departments, 1897 to 1904 :v,U, 392 

Department of State 334 

Treasury Department 340 

War Department 347 

Department of Justice 362 

Post-Offlce Department 366 

Navy Department 371 

Department of the Interior 379 

Department of Agriculture 883 

Department of Commerce and Labor 386 

The Civil Service 393 

Railway Regulation 395 

Merchant Marine 398 

Pensions and Pension Laws 408 

The problem of our colored citizens 416 

Vote for representatives in Congress, 1900-1902 423 

Vote for President, 1900 424 

Vote for President, 1856 to 1900 425 

McKInley and Bryan states, conditions In 426 

Work of the 58th Congress 427 

German-Americans for Roosevelt 432 

Budgets of principal countries of the world, 1880-1902 435 

Progress of the United States in principal Industries 436-440 

Development of the United States, 1800 to 1903 442, 443 

Railways in the United States, 1883-1902 condition* 444 

Financial and commercial conditions of principal countries 445 

Last speech of William McKUiley 449 

Last s£e,ech of Mascus* £j .Hr.nna 452 

Fifty yaars of the'« Republican* party, Hon. John Hay 456 

Fifty .years pf the. Republican party, Hon. C. W. Fairbanks 464 

Spe*icl/ of Hod. EHhnI Root, Republican National Convention, 1904... 466 
Speech of Hon. J. G.' Ca'ririon, Republican National Convention, 1904. 479 

Platform of Republican party, 1904 482 

Platform of Democratic party, 1904 486 

Platform of People's party, 1904 491 

Democratic platform and candidate discussed 493 

The St. Louis Esopus episode 497 

The trusts and Judge Parker 503 

Democratic record on the gold standard act of 1900 505 

Silver planks of Democratic platforms, of 1890-1900 507 

Rejected gold plank of St. Louis platforms, 1904 508 

Judge Parker's telegram and the Convention's reply 508 

Gold standard act of 1900 509 

Currency record of Republican and Democratic parties 512 

Commerce of gold and silver standard countries of the world.. 516 

Gold and silver production of United States, 1792-1903 517 

Gold imports and exports of United States, 1825-1903 518 

Commerce of the United States and Canada 522 

Coinage of the United States' mints 1846-1903 519 

World's production of gold and silver 1492-1903 520 

Stocks of money in 13 principal countries, 1873-1903 521 

Commerce of the United States with Canada, 1850-1903 522 

Passports and protection to American Citizens abroad 523 

President Roosevelt's speech to notification committee 529 

Senator Fairbanks' speech to Notification Committee 533 

Judge Parker's speech to the Notification Committee 541 

Republican National Committee 547 

Republican Congressional Committee 548 

Electoral votes by states, 1864 to 1900 549 

Electoral votes allotted to each state in 1904 549 



INDEX 



A 

Page. 

Advance in prices chiefly in natural products 247 

Advance in prices 241 

Advance in prices in other countries 243 

Adversity vs. prosperity in three presidential periods 105 

Adversity under low tariff of 1894 100 

Agitation of tariff, effect on manufactures and business 47 

Agriculture Department of, work of, 1897-1904 383 

Agricultural interest benefited by return to protection 103 

Agricultural products, exportation of, 1850 to 1903 130 

Agricultural products, prices compared with articles consumed 145 

Agricultural prosperity under Republican Administration 136 

Agricultural products, exportation of, under low tariff 139 

Allison, Hon. W. B. on trusts and tariff 195 

American citizen protected abroad 526 

American tariffs, 1789 to 1903 56 

American vessels engaged in foreign and domestic trade, 1860-1903.. 405 
American wheat crop and consumption of in United States, 1877-1903. 141 

Animals on farm, number and value, by groups, 1875-1903 140 

Animals on farms, value of, 1850-1903 440 

Animals on farm value of, under four Presidents 141 

Area, population wealth, etc., of United States, 1800-1903 442 

Arid lands, irrigation for 160, 162 

Army reduction and organization 348 

Asia, commerce with United States, growth of, 1899-1903 322 

Australia, tariff of 8 

Average wage increase or decrease, 1890-1903 204 

B 

Balance of trade before and since March, 1897 , 62 

Balfour, Sir Arthur, on British prosperity. 94 

Bank clearings in New York, 1850-1904 437 

Bank clearings in United States, 1890-1903 437 

Bank deposits, (all classes of banks) 1875 to 1903 109 

Bank deposits by states, 1892-96-1903 113 

Bank deposits, savings, 1820 to 1903 107 

Bank deposits, in United States, 1875-1903 438 

Banks, national, 1863 to 1903 110 

Banks, national organized 346 

Barrett, Hon. John, on extension of American influence 323 

Barrett, Hon. John, on shipping question 402 

Beet sugar, production in the United States 155 

Beet and cane sugar production in United States 157 

Beet sugar, produced in United States, 1880-1903 159 

Beet sugar and Cuban reciprocity 156 

Beet sugar and cane sugar production of the world, 1840-1903 159 

Beet sugar production of the United States, 1880-1903 440 

Belgium, tariff of 7 

Bismarck on protection in United States 95 

Boots and shoes, did tariff on hides affect prices of? 44, 46 

Boots and shoes, prices 1897 to 1904 66 

Budgets of the principal countries of the world, 1880-1903 435 



Page. 

Boltftio speech of President McKlnley 449 

Bureau of corporations, Its work since orgnnlzntlon 888 

BostnetS and industrial conditions, 18964)6 V2~> 

r.usincss of Post Office Department, statistical details, 1790-1903... 370 

Rrltlsh and American Industrial growth compared 04 

Rritish arguments for protection 57 

Rrltlsh colonies, tariffs of 8 

Rritish Imports of manufactures 8 

Hrltlsh Iron and steel commission, views on United States Industry.. 52 

I'.ritish tariff and revenues produced thereby 70 

British tariff, detailed statement 70 

British view of protection '. 49 

Bryan and McKInley states of 1900, conditions In 420 

Bryan, Wm. Jennings, speech on Parker etc 52!» 

c 

Cable, the Pacific 293 

Panada, commerce of United Staffs with, 1850-1903 522 

Canada, reciprocity with 45 

Canada, tariff of 8 

Canal Sault Ste. Marie, tonnage of vessels, 1800-1903 440 

Canal, Panama discussed 207 

Cane and beet sugar production of the world, 1840-1903 159 

Cannon, Hon. J. G., speech at Republican National Convention, 1904. 479 

Capital and labor, relative share In prosperity 37 

Capital Invested in manufacturing 1850 to 1900 07 

Census of 1900 on share of manufactures produced by trusts 15 

Census report on irrigation 1G3 

Chamberlain, Hon. Joseph, on British prosperity 94 

Cheap transportation destroys natural protection 6 

Circulation of money in the United States, July 1st, 1904 397 

Circulation of money, increase, 1896 to 1904 341 

Circulation of money in the United States, 1800-1903 442 

Circulation of money in United States, 1850-1904 437 

Civil service, the 393 

Clearing house returns in New York and United States 112 

Cleveland's administration, record of trusts 191 

Cleveland low tariff adversity 100 

Coal consumption as a measure of industrial activity 01 

Coal consumption in free trade and protection countries 01 

Coal consumption In high and low tariff countries 12 

Coal, growth in production in United States 39, 01 

Coal, prices of before and after removal of tariff 45 

Coal production of United States, 1850-1903 439 

Coal strike, President Roosevelt's action 201 

Coinage of United States mints, 1840-1902 523 

Colonies, trade of Great Britain with its, 1809-1902 321 

Colored citizens, problem of 410 

Colored employees in the service of the United States government. . 42'J 

Combinations, industrial, in England 13 

Combinations, wages paid by, before and after consolidation.. 230 

Commerce, effect of protection upon 20, 02 

Commerce, growth under reciprocity 40 

Commerce and Labor, department of, its work since organization.. 380 

Commerce of countries commercially adjacent to the Philippines 322 

Commerce of gold and silver standard countries of the world 519 

Commerce of the United States, 1790 to 1904 128 

Commerce of United States with Asia, 1899-1903, growth of 322 



INDEX. Vll 

P4.GE. 

Commerce of 'United States with Canada 522 

Commerce of the U. S. in American and foreign vessels, 1860-1903.. 400 
Commerce of U. S. compared with Germany and United Kingdom.. 122 

Commerce with countries protesting against Dingley law 30 

Commerce with our Island possessions 292 

Commerce with Oceania 295 

Commerce of the Orient, importance to the United States 291 

Commerce of the Pacific, development of 290 

Commerce of the United Kingdom, growth compared with U. S... 122 

Commerce of the United Kingdom, with its colonies, 1869-1902 321 

Commercial failures in United States, 1880 to 1903 114 

Commercial and financial statistics of principal countries 445 

Commercial relations of United States with its islands 318 

Committee, Republican National 547 

Committee, Republican congressional 548 

Conditions in Bryan and McKinley states, of 1900 426 

Conditions in United States compared with other countries 122 

Conditions of prosperity 1S92-96-1900 and 1903 116 

Congress, the 58th, its work discussed 427 

Congressional election record, 1900-1902 423 

Congressional Record, "Extracts From" described 4 

Congressional Record, "Pages From" described 4 

Consumption of coal in free trade and protection countries 61 

Consumption of cotton as test of prosperity 102 

Control of markets and prices by corporations 15 

Corn, average value per bushel, 1870-1903. 441 

Corporations, bureau of, its work since organization 388 

Corporations, can they control markets and prices 15 

Corporations, Judge Grosscup on 16 

Corporations, President Roosevelt on 17 

Cost of living in United States and England compared 34 

Cotton consumed by manufacturers of United States, 1850-1903 440 

Cotton consumption as test of prosperity 102 

Cotton industry of United States, 1850 to 1900 92 

Cotton Manufacturing development under protection S8 

Cotton production, manufacture, importation and exportation 92 

Cotton production of United States, 1800-1903 443 

Cotton production of the United States, 1830-1903 440 

Countries protesting against Dingley law, trade with 29 

Crops, principal, value of, 1866-1903 139 

Cuba, Democratic record regarding 288 

Cuba, naval stations in 376 

Cuba record of action by United States 284 

Cuban reciprocity and beet sugar 156 

Currency of all kinds in circulation July 1st, 1904 397 

Currency of 13. principal countries 525 

Currency record of Republican and Democratic parties 515 

Currency system element of elasticity development 343 

D 

Day's wages, purchasing power of, 1896-1903 211 

Debt and wealth of leading nations 124 

Debt of United States, 1800-1903 442 

Debt of United States 1850-1903 437 

Debt of U. S. 1865-1903 135 

Democracy and panic periods 58, 60 

Democratic adversity, record of 1893-96 125 



viii index. 

Page. 

Democratic convention reply to Judge Parker's telegram.. 511 

Democratic party, Its policy of opposition, Littleton 2 

I democratic platform, iD04 489 

I democratic platform discussed and analyzed 496 

Democratic press on exports below home prices 22 

1 democratic record in Cuban legislation 288 

Democratic record on rural free delivery 165 

Democratic record on trusts 168, 101 

Democratic silver planks 1896-1900 510 

Democratic vote against gold standard act / 508 

Democratic and Republican pension legislation record 411 

Democratic and Republican record on currency 515 

Democratic and Republican States, labor laws in 236-238 

Department of Agriculture, its work, 1897-1904 383 

Department of Commerce and Labor, Its work * 386 

Department of Commerce and Labor, work regarding trusts 176 

Department of Interior, its work, 1897-1904 379 

Department of Justice, its work, 1897-1904 362 

Department of Justice, work regarding trusts 172 

Department of State, its work, 1897-1904 334 

Department of State, work in the Orient 324 

Deposits in all classes of banks, 1875 to 1903 109 

Deposits in Savings Banks, 1820 to 1903 107, 108 

Deposits, savings, in various countries 108 

Dingley law, imports of raw material under 42 

Dingley tariff, prosperity urder 12 

Dingley law, trade with countries protesting against 29 

Diplomacy of the United States in Orient 324 

Duties collected under low and protective tariffs 30, 59 

Duties paid per capita on imports, 1870 to 1903 133 

E 

Earnings in various occupations, 1903 compared with J.896 206 

Earnings of railway employees, 1896 and 1903 236 

Earnings of various occupations, 1890-1903 200-203 

Effect of tariff agitation on manufactures and business. 47 

Effect of protection on export trade 25 

Elasticity in currency system development 343 

Election laws in the South and North 420 

Election of members of Congress, vote on, 1900-1902 423 

Electoral votes by States, 1864 to 1900 '. 537 

Electoral and popular vote for President, 1900 424 

Electors, number to earn State, 1904 549 

Employers and employees in United States, English views on 53 

Employees of manufacturing establishments in U. S., 1850 to 1900.. 67 

Employees of railways, earnings of 1896 to 1903 * 236 

Employment and wages paid in manufacturing, 1850 to 1900 67 

England and the United States, wages of labor in 222 

England and United States, relative to industrial growth 64 

England and United States, wages in cities. 226 

England and United States, retail prices in 227 

England, experience with free trade 16 

England, growth of wealth and manufacturing 38 

England, imports and exports of manufactures, 1860 to 1902 40 

England, sales abroad below home prices 21 

England, trusts in 181 

English argument for protection 57 



Page. 
English attitude toward trusts 13 

English imports of manufactures 8 

English Iron and Steel Commission to United States 52 

English Labor Commission to United States 51 

English tariff, detailed statement 70 

English tariff and revenue produced thereby 70 

English views of American tin plate industry 54 

English view of protection 49 

Esopus-St. Louis episode 500 

Europe, trusts in 180 

European combinations against the United States 27 

European exports below home prices 22 

Excess of exports before and since March 4th, 1897 62 

Exchange value of food products, 1896 and 1903 216 

Expansion and its results 296 

Expenditures and receipts of United States, 1790 to 1903 134 

Expenditures of the United States compared with other countries.. 115 

Expenditures of leading nations per capita 124 

Expenditures for military and navy services of principal countries. . 435 

Expenditures of principal countries of the world, 1880-1903 435 

Expenditures of principal countries for navy 378 

Expenses of living in United States and England compared 34 

Exportation of agricultural products, 1850 to 1903 130 

Exportation of farm products under low tariff 139 

Exportation of manufactures 1850 to 1903 130 

Exports and imports of the United States, 1790 to 1904 128 

Exports and imports, excess of under high and low tariffs 62 

Exports below home prices, democratic press on 22 

Exports by England below home prices 21 

Exports of U. S. to Grand Divisions, 1850 to 1903 132 

Exportation by great groups, 1850 to 1903 130 

Exports, excess of, before and since March 4th, 1897 62 

Exports from the United States, 1850-1904 438 

Exports from United States, 1800-1903 '. 443 

Exports of manufactures below home prices 18, 80 

Exports of manufactures from the 1 United States, 1850-1904 438 

Exports per capita, 1870 to 1903 i 133 

Exports to Asia and Oceania 294 

Exports to countries protesting against Dingley law 30 

Exports to the Orient, by articles 294 

Export trade, effect of protection on 25 

Exports under high and low tariffs of United States 26, 62 

Extension of National bank system 344 

"Extracts from Congressional Record" described 4 

F 

Failure of crops not cause of panic of 1893-4 60 

Failures in United States, 1880 to 1903 114 

Failures, strikes, etc., 1893-1896 125 

Fairbanks, Hon. C. W., speech at Jackson, Mich 456 

Fairbanks, speech to Notification Committee 539 

Farm animals, increase in value 137 

Farm animals, number and value, by groups, 1875-1903 140 

Farm animals, value of, 1850-1903 440 

Farm animals, value of, under four presidents 141 

Farm crops, value of, 1866-1903 139 

Farm crops,, value of, 1895 to 1903 .- 114 



X INI" 

Page. 

Farm earnings in manufacturing and nonraanufacturing sections. . . . 148 

■ products, exportation of, under low tariff 130 

Farm products, freight rates of 18681003 146, 147 

■ products, price, by states, 1802-1003 142, 143 

Farm products, prices compared with articles consumed 1877-1003.144, 145 

Farm prodm -ts. purchasing power of, 1806 and 1003 217, 210 

l arm products, share used by manufacturers 31 

Farm values, growth of 08 

Farm values, increase in, since 1895 114 

Farm values, Increase of, under Republican administration 136 

Farmers benefited by return to protection 103 

Farmer, relation of manufacturing to 91 

Farmer's prosperity under Republican administration 136 

Farmer, value of factory to 148 

Fifty years of Republican party, Hon. John Hay 456 

Fifty-eighth Congress, Its work 427 

Financial, commercial and industrial conditions, 1802 to 1003 116 

Financial and commercial statistics of principal countries 445 

Financial record of the Republican and Democratic parties 515 

Food in England, prices of, increase in 225 

Food products, exchange value of, 1806 and 1003 215 

Food purchased with one day's wages, by articles, 1806-1003 211 

Food, relative prices, 1800-1003 200 

Foreign carrying trade in American and foreign vessels, 1860-1003.. 406 

Foreign commerce of the United States 128 

Foreign countries, tariffs of 7 

Foreign sales below home prices 18, 80 

"Free raw materials" under Dingley and Wilson laws 42 

Free trade between the U. S. and Porto Rico, Hawaii, and Alaska. . . 207 

Free trade destructive In England 16 

Free trade, English arguments against 57 

Freight rates on farm products, 1868-1003 146, 147 

France, tariff of 7 



Q 

Garfield, Hon. James A., on great corporations 180 

German-Americans for Roosevelt 432 

Germany, tariff of 7 

Germany, wages affected by protection 63 

Gold certificates in circulation in United States, July 1st, 1004 307 

Gold, excess of Imports over exports, 1850-1003 439 

Gold imports and exports 52 1 

Gold in circulation in United States July 1st, 1004 397 

Gold and sliver production of the world, 1403-1002 524 

Gold and silver standard countries of the world, their commerce 51.0 

Gold and silver produced by principal countries 1002 524 

Gold and silver productions in the United States, 1402-1003 520 

Gold standard act, Democratic vote against 508 

Gold standard act, copy of r )12 

Government expenditures of the United States, 1850-1003 437 

Government receipts under low and protective tariffs 30 50 

Gray, Judge, on President's attitude in coal strike 2G3 

Great Britain, Chamberlain and Balfour on lack of prosperity 04 

Great Britain, labor conditions in 34 

Great Britain, trade with its colonies, 1860-1002 321 



Page. 

Great Britain, trusts in 13 

"Greenbacks" in circulation, July 1st, 1904 397 

Grosscup, Judge, on corporations 16 

Growing demand for tropical products in the United States 292 

Growth of exports to Asia and Oceania 294 

Growth of exports under protection 26, 62 

Growth in imports and exports of manufactures, England and U. S. . 41 

Growth of wealth in United States and other countries 37, 38 

Growth of wealth under protection 98 

Guenther, on European exports below home prices 22 

H 

Hanna, Marcus A., last words of advice to the party and people. . . . 452 

Hawaiian Islands, commerce with, 1897-1903 319 

Hawaiian Islands, Philippines and Porto Rico, conditions 299-322 

Hawaiian Islands, work of United States in 311 

Hay, Hon. John, speech at Jackson, Mich 456 

History of Republican party, Hon. John Hay on 456 

History of Republican party, Senator Fairbanks on 464 

Home market, equals world's international commerce 32 

Home markets, value under protection 31, 32 

Homestead entries in United States, 1890-1903 441 

I 

Immigrants arriving in United States, 1850-1903 441 

Importation of manufacturers' materials, 1850 to 1903 129 

Importation, production and consumption of sugar, 1880-1903 158 

Imports and exports of gold coin and bullion, 1825-1903 521 

Imports and exports of United States, 1790 to 1904 128 

Imports by Grand Divisions, 1850 to 1903. 131 

Imports into the United States, 1850-1904 438 

Imports into United -States, 1800-1903 443 

Imports of material for manufacturing, 1850-1903 439 

Imports of the United States by great groups, 1850 to 1903 129 

Imports, prices advance in 244 

Imports, tropical into the United States, by articles, 1870-1903 .... 320-321 

Increase and decrease of earnings, 1890-1903 204 

Increase in prices of food in England 225 

Increased earnings of various occupations, 1896-1903 206 

Industrial combinations, effect on wages 230 

Industrial combinations in England v 13 

Industrial Commission on trusts abroad 14 

Industrial Commission on prices in foreign markets 18-80 

Industrial growth in England and United States 64 

Industrial life insurance under high and low tariffs 33 

Industrial life insurance in force in United States, 1880-1902 438 

Insular tariff cases 362 

Insurance, life, in force in United States, 1850-1902 438 

Interdependence and home exchange under protection 32 

Interest charge, United States, per capita, 1850-1903 437 

Interest on public debt, 1865-1903 135 

Interest charge on public debt of United States, 1850-1903 437 

Interior Department, its work, 1897-1904 379 

Interstate commerce commission, its work 395 

Investigation of Post-Office Department 367 

Iron and coal as an index of prosperity 99 

Iron and steel consumption in United States and other countries.... 78 



XII INDI.X. 

Page. 
Iron and steel Industry In the United tSates 77 

Iron and steel, share produced by steel corporation 15, 05 

Iron ore, prices, 1898 to, 1903 83 

Irrigation, President Roosevelt on HH), 1G2 

Irrigation statistics, what has been accomplished li;.". 

Islands of the United States, commerce with 318 

Island territories of the United States, conditions 29,9 322 

Isthmian canal, advantage to western ports 296 

Isthmian canal discussed 1M!7 

Italy, tariff of 7 

J 

Jarrett on English exports below home prices 21 

Jeans, English steel expert, on manufacturing In United States 52 

Jenks, Prof., on trusts abroad 14 

Jewish citizens, passports question discussed 526 

Judge Gray on President's attitude in coal strike 263 

Justice, Department of, its work, 1897-1904 362 

L 

Labor and capital, relative share in prosperity 37 

Labor conditions in Great Britain 34 

Labor and protective tariff 33 

Labor Bureau reports by states 231 

Labor Commission, English, visit to United States 51 

Labor, effect of trusts on 227 

Labor in United States, English views 53 

Labor in United States and England, wages of 222 

Labor laws in Republican and Democratic states 236-238 

Labor, relative compensation in United States and England 36 

Labor, wages and prices 200 

Land frauds, work of Interior Department regarding 379 

Last speech of Marcus A. Hanna 452 

Last speech of Wm. McKinley 449 

Laws enacted by Republican party 332 

Laws, labor in Republican and Democratic states 236-238 

Leather manufactures, prices not affected by tariff on hides 44, 46 

Legislation, Republican, on labor 332 

Life insurance in force in United States, 1850-1902 438 

Life insurance, industrial, under high and low tariffs 33 

Lincoln on tariff 48 

Littleton, Hon. Martin W., on Democratic party 2 

Live stock on farms, value of under four Presidents 141 

Live stock on farms, number and value of, by groups, 1875-1903 .... 140 

Living, cost of in United States and England compared 34 

Living, cost of, compared with wages 208 

Losses of wage earners under low tariff 100 

M 

Manufactures, annual value of products 150 

Manufactures exported from the United States, 1850-1904 438 

Manufactures exported from United States, 1800-1903 443 

Manufactures, exports of 130 

Manufactures, exports less than home prices 18-80 

Manufactures, imports and exports, England and U. S., 1860 to 1903. 41 
Manufactures, imports and exports of England, 1860-1902 40 



INDEX. Xlll 

Page. 

Manufactures, imports into Great Britain 8 

Manufactures of the United States by great groups in 1900 150 

Manufactures of leading countries compared with United States 124 

Manufactures in the United States, value, 1850-1900 150 

Manufactures, prices not controlled by trusts 44 

Manufactures, relative growth under high and low tariffs 38 

Manufactures, value of product in United States, 1850 to 1900 67 

Manufacturer's materials, advance in prices of 242 

Manufacturer's material imported, 1850*1903 439 

Manufacturers, use of farm products by 31 

Manufacturing in the United States, capital, wages, etc., 1850 to 1900 6T 

Manufacturing in United States, Moseley commission on 51 

Manufacturing, progress in the United States, 1850 to 1900 . 67 

Manufacturing, value to the farmer 148 

Markets, can corporations control 15 

Markets supplied by islands of United States 318 

Materials for use in manufacturing imported into U. S., 1850-1903.. 439 

Materials for use in manufacturing, imported, 1850-1903 439 

Materials used in manufacturing, 1850 to 1900 67 

McKinley, Wm., last speech of 449 

McKinley tariff, prosperity under 12 

McKinley and Bryan states of 1900, conditions in 426 

Merchant marine of United States and the world 398 

Merger suit, what it saved 193 

Merger case, New York World on 196 

Military and naval expenditures of leading countries 435 

Military service, its work, 1897-1904 348 

Mineral productions as test of prosperity 102 

Mineral production of the United States, 1870-1903 440 

Mints, United States, coinage of, 1846-1902 523 

Money in circulation in United States, 1800-1903 442 

Money in circulation in United States, 1850-1903 437 

Money in circulation in United States, July 1st, 1904 397 

Money in circulation, increase, 1896 to 1904 341 

Money in 13 principal countries of the world, 1873 and 1902 525' 

Money supply, elasticity in system, development of 343 

Moseley commission to United States, views of members 51 

Moseley, English manufacturer on United States 35, 50 

Mulhall on Protection in United States 95 

N 

National banks, 1863 to 1903 110 

National bank notes in circulation, July 1st, 1904 397 

National banks organized since March 4th, 1900 346 

National bank system, its extension 344 

National bank statistics, 1904 121 

National expenditures of leading nations compared, per capita . . 124 

National expenditures of leading countries, per capita • 115 

Natural protection destroyed by cheap transportation 6 

Naval expenditures of principal countries 378 

Naval and military expenditures in leading countries 435 

Naval stations in Cuba 376 

Navy Department, work of, 1897-1904 371 

Netherlands, tariff of 7 

New York World on Merger case 196 

New Zealand, tariff of 8 



XIV INDEX. 

Page. 
Noncontiguous territories of the United States, conditions 299-322 

Nondurable articles, advance in prices 119 

Northern securities decision 177 

Norway, tariff of 7 

Number of persons engaged In manufacturing, 1850 to 1900 67 

o 

Ocean mall service payments by U. S. and United Kingdom, 1848-1903. 407 

Oceania, commerce with 295 

Old age pension order, Gen. Sickles on 412 

Old age pension order, Secretary Hitchcock on 413 

Old age pension order issued by Lochran, in 1893 414 

Open shop order of President Roosevelt 259 

Organization and reduction of the army 348 

Orient exports to, by articles 294 

Orient, importance of its commerce to the United States 291 

P 

Pacific, the, development of commerce on 290 

Pacific cable 293 

Pacific coast brought nearer European markets by canals 296 

"Pages from Congressional Record" described 4 

Panama Canal, advantage to Western ports 296 

Panama Canal discussed 267 

Panama Canal, distance between ports via 283 

Panama, extract from President's message on 276 

Panama Republic recognized by foreign governments 274 

Panama, Secretary Root on 274 

Panic of 1893-4 not due to crop failures 60 

Panic periods and Democracy 58, 60 

Parker and trust managers .' 198 

Parker and the trusts 506 

Parker, Wm. Jennings Bryan on 529 

Parker's letter on his vote for free silver, 1896-1900 500 

Parker telegram to St. Louis convention 511 

Parker ; speech to Notification Committee 541 

Passports and protection to American citizens of all classes 526 

Pensions, cost of, 1866-1903 410 

Pensions and pensioners 408 

Pension legislation, Republican and Democratic record contrasted.... 411 

Pension Order No. 78, Secretary Hitchcock on. 413 

Pension Order No. 78, General Sickles on 412 

Pensioners, number on the roll, 1866-1903 410 

People's party, platform of, 1904 494 

Per capita of exports and imports, 1870-1903 133 

Per capita of imports and duties paid, 1870-1903 133 

Per capita of national debt and interest, 1865-1903 135 

Per cent of increase or decrease in hours of labor 205 

Per cent of world's sugar production by beet and cane, 1840-1903. . 159 

Philippines, commerce with, 1897-1903 319 

Philippines, commerce of countries commercially adjacent to 322 

Philippine Islands, work of the United States army in 350 

Philippines, work of United States in 299-311 

Philippines, Porto Rico, and Hawaiian Islands, conditions 299-322 

Pig iron, growth in production in United States 39, 78 

Pig iron, production of the United States, 185&1903 439 



INDEX. XV 

Page. 

Platform of Democratic party, 1904 489 

Platform of Democratic party discussed and analyzed 496 

Platform of the People's party, 1904 494 

Platform of Republican party, 1904 485 

Popular and electoral vote for President by states, 1900 424 

Popular and electoral vote for President, 1856 to 1900 425 

Population of the United States, 1850-1903 437 

Population, wealth, and area, etc., of the United States, 1800-1903. . 442 

Populist party, platform of, 1904 494 

Porto Rico, commerce with, 1897-1903 319 

Porto Rico, work of United States in 313 

Porto Rico, Hawaiian Islands, and Philippines, conditions 299-322 

Portugal, tariff of 7 

Post-Office Department, its development, 1790-1903 370 

Post-Office Department, its work, 1803-1904 366 

Post-Office Department investigation 367 

Post-Office Department, revenues of, 1790-1903 370 

Post-offices, number in United States, 1790-1903 370 

Post routes in United States, length of, 1790-1903 370 

Postal fraud case, result of 368 

Postal investigation, result of cases tried 368 

Postal receipts, 1893-1904 306 

Postal statistics of United States, 1790-1903 370 

President Roosevelt's administration, record of 252 

President Roosevelt and the coal strike 261 

President Roosevelt on irrigation 160, 162 

President Roosevelt on public lands 160 

Presidential vote, electoral and popular, 1900 424 

Presidential vote, electoral and popular, 1856-1900 125 

Prices, 1880-1903, annual average 245 

Prices, advance of, in articles imported 244 

Prices, advance is chiefly in natural products 247 

Prices and advance in other countries 243 

Prices and relation of trusts thereto 15 

Prices and tariff, English views on 55 

Prices at home, does protection increase 43 

Prices, can corporations control 15 

Prices, does tariff control 119 

Prices not controlled by trusts , 44 

Prices of articles of farm production and consumption, 1877-1903. . 144, 145 

Prices of boots and shoes, 1897-1904 66 

Prices of coal before and after removal of tariff 45 

Prices of cotton and cotton goods in United States, 1880-1003;. 93 

Prices of farm products by states, 1892-1903 142, 143 

Prices of food in England, increase in 225 

Prices of manufactures reduced by domestic prosperity 99 

Prices^ of iron ore, 1898-1903 83 

Prices of tin plate and fall under protection 85 

Prices of trust-made articles, decline in 118 

Prices, relative, of food, 1890-1903 209 

Prices, retail, in United States and England 227 

Prices, wages, and labor 200 

Problem of our colored citizens 416 

Production of gold and silver in the world, 1493-1902 524 

Production of gold and silver by principal countries. 1902 524 

Production, importation, and consumption of sugar, 1880-1903 158 

Production of minerals as test of prosperity 102 



XVI INDEX. 

Page. 

Progress of manufacturing in the United States, 1850-1900 t>7 

Progress of United States in area, population, etc., 1800 loo:;. .. . I ij 

Progress of United States In its material industries 487440 

Promise of tariff changes causes immed'ate check in prosperity.... LOO 

Prosperity and relation to the various tariffs of the United States, i 86 

Prosperity, conditions in 1892-96, 1900-03 110 

Prosperity in the United States !) I 

Prosperity of the farmer under Republican adniiuislr.it ion i;;r, 

Prosperity permanent under permanent protection 07 

Prosperity, return of, under DIngley tariff 101 

Prosperity, relative growth by labor and capital 37 

Prosperity under Roosevelt's administration 104 

Prosperity under present tariff 12 

Prosperity vs. adversity in three presidential periods 105 

Protection and development of Iron and steel industry 77 

Protection and labor 33 

Protection as viewed by English Steel Commission 52 

Protection as viewed by Moseley Commission 51 

Protection, British view of 49 

Protection does not increase home prices 43 

Protection, effect on steel rail industry 78 

Protection, effect on export trade 25 

Protection, English arguments for 57 

Protection, growth of exports under 26, f>L> 

Protection in Germany and effect on wages 63 

Protection, natural, destroyed by cheap transportation (5 

Protection, permanent, gives permanent prosperity 97 

Protection reduced prices of steel rails 43 

Protective tariff as revenue producer 30, 59 

Protection, value to sheep and wool industry .■ 151 

Public buildings, new, erected in United States since 1897 342 

Public debt of United States, 1865-1903 131 

Public debt and wealth of principal countries 109 

Public lands, president Roosevelt on 160 

R 

Rails, steel, exports below home prices 23 

Rails, steel, prices reduced under protection 43 

Rails, steel, production, tariff, and prices, 1867-1903 82 

Railroads, earnings, passenger, freight carried, etc., 1885-1902. . . . 440 

Railroads placed under receivership and sold, 1876 to 1903 112 

Railway employees, earnings of, 1896 and 1903 236 

Railways In length, business transactions, etc., 1883-1902 4t4 

Railway legislation, recent 395 

Railway regulations, work of interstate commerce commission 395 

Rates of freight on farm products, 1868-1903 146, 147 

Raw materials, advance in prices 242 

Raw material, importations under Dingley law 42 

Raw silk, imports into United States, 1870-1903 440 

Receipts and expenditures of United States, 1790-1903 134 

Receipts of the Post-Office Department, 1893-1904 306 

Receipts of United States Treasury, 1850-1903 437 

Receivership, railroads placed under, 1876-1903 112 

Reciprocity, Blaine on 45 

Reciprocity, commerce with Canada during 522 



.. 

INDEX. XV11 

I 

Page. 

Reciprocity, Democratic 46 

Reciprocity, Democratic platform of 1892 47 

Reciprocity, Democratic text-book of 1902 on 47 

Reciprocity, expenses of United States with 45 

Reciprocity, growth of commerce under 46 

Reciprocity, Hawaiian Treaty 46 

Reciprocity, McKinley on 45 

Reciprocity, Republican 45 

Reciprocity, treaties under McKinley law 46 

Recognition of Panama by foreign governments 274 

Record of Republican and Democratic parties on currency 515 

Record of two parties on rural free delivery '. 165 

Record of two parties on trust legislation 168 

Reduction and organization of the army 348 

Relative prices of food, 1890-1903 209 

Relative value of lands, manufacturing and other sections 148 

Retail prices in England and United States 227 

Retaliation, tariff, by foreign countries 27 

Reports of State Labor Bureau 231 

Republican and Democratic record on currency 515 

Republican and Democratic record on pension legislation 411 

Republican and Democratic states, labor laws in 236-238' 

Republican legislation . . . ; 332 

Republican congressional committee 548 

Republican national committee. J 547 

Republican party, some of the things for which it stands 329 

Republican party, 50 years of, Hon. John Hay on 456 

Republican party, 50 years of, Senator Fairbanks on 464 

Republican platform, 1904 485 

Republican record on rural free delivery 165 

Republican record on trusts 168 

Republic of Panama recognized by foreign governments 274 

Result of expansion 296 

Returns of clearing house in New York and United States 112 

Revenue under British tariff 70 

Revenue of United States under low and protective tariffs, 1790-1903. 59 

Revenues of the Post-Office Department, 1790-1903 370 

Revenue production under low and protective tariffs 30, 59 

Revision of present tariff 13 

"Rich growing richer and poor poorer" 37 

River and harbor improvements under United States army 357 

Roosevelt's administration, record of 252 

Roosevelt, extract from message on Panama 276 

Roosevelt, German Americans for 432 

Roosevelt's labor record 258 

Roosevelt, President, on trusts and corporations 17 

Roosevelt on trusts and corporations 171 

Roosevelt, prosperity under his administration 104 

Roosevelt, speech to notification committee 530 

Roosevelt, Theodore, personal history and record 248 

Root, Hon. Elihu, speech at Republican National Convention, 1904... 466 

Rural free delivery, appropriations of 1904 167 

Rural free delivery, record of two parties on 165 

Rural free delivery, work of Post-Office Department in 366 

Russia, passports and persons visiting 526 

Russia, tariff of 7 



XVU1 INDEX. 

Sai<s abroad beibvi borne prices is. s6 

Sales to Asia and Oeeanii -jui 

sales to eouotrlei protesting aga'lnsl Dlngley law go 

Sau it Ste. Marie Caual, tonnage of vessels, I860 r.ui:; in 

Savings bank deposits, 1820-1908 Iu7, ins 

Savings bank deposits under hi^li and low tariffs ;;;; 

Savings deposits' in various countries 108 

Share of iron and steel mfrs. produced by Steel Corporation 06 

Share of iron and steel produced by steel corporation 15 

Share which manufactures form of imports, 1870-11)03 !.;:; 

Shaw, Hon. L. M., on Democratic trust record i:n 

BhaWi Hon. L. M., on exports below home prices 18 

Sheep and wool Industry, 1878-1900 lift) 

Sheep and wool industry of United States 151 

Sheep on farms and wool production and importation 154 

Shipping of the United States and the world 398 

Shipping of the world in 1904, by countries 405 

Sickles, Gen. Daniel E. on old age pension order 412 

Silk industry of U. S/, 1850 to 1900 92 

Silk manufacturing and development under protection 90 

Silver and gold produced by principal countries, 1902 524 

Silver and gold productions in United States, 1492-1902 520 

Silver and gold production of the world, 1493-1902 524 

Silver certificates in circulation July 1st, 1904 397 

Silver dollars in United States and in circulation, July 1st, 1904 397 

Silver plank of Democratic platform 1896-1900 ! 511 

Silver, subsidiary in circulation July 1st, 1904 397 

South African tariff : 8 

South, election laws in 420 

Spain, tariff of 7 

Spain, tariff of 8 

Speech of President Wm. McKinley, at Buffalo 449 

Speech of Hon. Elihu Root, at Republican National Convention, 1904. 466 

St. Louis-Esopus episode 500 

St. Louis platform, rejected gold plank 511 

States, bank deposits in each", 1892-96-1903 113 

State Department, its work, 1897-1904 334 

State Department, its work in the Orient 1 324 

State Labor Bureau reports 231 

Steel and iron, share produced by steel corporation 15 

Steel production of the United States, 1870-1903 439 

Steel rails, exports below home prices 23 

Steel rail industry, effect of tariff on 78 

Steel rails, prices reduced under protection 43 

Steel rails, produced in United States, 1870-1903 439 

Steel rails, production, tariff and prices, 1867 to 1903 82 

Strike of Coal miners, President Roosevelt's action 261 

Subsidies and payments, Ocean mail service, England and U. S 407 

Subsidiary silver in circulation, July 1st, 1904 397 

Sugar production, importation and consumption, 1880-1903 158 

Sugar production in the United States 157 

Sugar, world's production of, 1880-1903 158 

Sugar, world's production of beet and cane sugar, 1840-1903 159 

Summarization of earning power in food products, 1890-1903 213 

Swank on exports below home prices 25 

Sweden, tariff of 7 

T 

Taft, Hon. Wm. H., on conditions in Philippines 309 

Tariff agitation, effect of on manufactures and business 47 

Tariff and prices of coal 45 

Tariff and prices, English views on 55 

Tariff and trusts 13 

Tariff and trusts, Hon. W. B. Allison on 195 

Tariffs and trust, English views on 55 

Tariff discussed 5-65 

Tariff does not control prices 119 

Tariff, effect on Steel Rail Industry 78 

Tariff, Lincoln on 48 



Page. 

Tariffs of foreign countries 7 

Tariff of the United Kingdom 70 

Tariffs of the United States and their relation to prosperity 96 

Tariffs of the United States, historical 8-12 

Tariffs of U. S., 1789 to 1903 . . .. 56 

Tariff of 1894, adversity under 100 

Tariff relations between the United States and its island territories. . 296 

Tariff retaliation by European countries. . 27 

Tariff revision 13 

Textile industry development under protection .' 88 

Textile industry of U. S., 1850 to 1900 92 

The army, its work, 1897-1904 348 

Theodore Roosevelt's record and personal history.- 248 

The Orient, American diplomacy in 324 

The Pacific, development of its commerce 290 

Things for which the Republican party stands 329 

Tin plate industry in United States, English views on 54 

Tin plate prices and fall under protection 85 

Tin plate prices in United States and United Kingdom 84 

Tin plate production in United States and England 36-54 

Tin plate productions in United States and United Kingdom 84 

Trade of countries commercially adjacent to Philippines 322 

Trade relations of United States with its islands 318 

Trade with countries protesting against Dingley law 30 

Trade with our Island possessions 292 

Transportation, low rates destroy natural protection 6 

Treasury Department, its work, 1897-1904 340 

Treasury receipts of United States, 1850-1903 437 

Tropical imports into the United States, by articles, 1870-1903. . . 320-321 

Tropical products, growing demand for 292 

Tropical requirements of the U. S. supplied by island possessions. .. . 292 

Trusts and control of prices 44 

Trusts and industrial combinations discussed 168 

Trusts and Judge Parker 506 

Trust and labor, effect of wages 227 

Trusts and prices 15 

Trusts and prices of sales abroad 18, 80 

Trusts and tariff 13 

Trusts and tariff, Hon. W. B. Allison, on 195 

Trusts and tariff, English views on •. . . . 55 

Trusts, attitude of the two great parties on 179 

Trusts,' can they control markets and prices 15 

"Trust controlled" articles reduced in prices 119 

Trusts, do they control prices? 118 

Trusts, English attitude toward 13 

Trusts in England 13 

Trusts in Europe 180 

Trusts in Europe, Industrial Commission on 14 

Trusts in the United Kingdom 181 

Trusts. Judge Grosscup on 16 

Trust made articles, decline in prices 118 

Trust officials and Parker candidacy 198 

Trusts, President Roosevelt on 17 

Trusts, record of Cleveland's administration on 191 

Trusts, share of manufactures produced by them 15 

Trusts, wages paid before and after consolidation 230 

Trade with the island territories of the United States .' 296 

Trusts, work of the Department of Justice 170, 172 

u 

United Kingdom, growth of wealth and manufactures 38 

United Kingdom, imports of manufactures 8 

United Kingdom, imports and exports of manufactures, 1860 to 1902 40 

United Kingdom, labor conditions in 34 

United Kingdom tariff and revenue 70 

United Kingdom trade with its colonies, 1869-1902 321 

United Kingdom, trusts in 181 

United Kingdom, trusts in 13 

United States and England, retail prices in 227 

United States and England, wages in cities 226 

United States and England, wages of labor in 222 



XX INDEX. 

United States, business success, views of Bismarck, and Mulhall on.. 95 

United States, coriunerce with Canada 522 

United States, conditions in, compared with other countries 122 

United States, debt of, 1850-1003 437 

United States, expenditure! compared with other countries 115 

United States, exports of manufactures from, 1850-1004 438 

United States government expenditures, 1850-1903 437 

United States, growth of wealth and manufactures 88 

United States Imports and exports, 1850-1904 438 

United States notes in circulation July 1st, 1904 397 

United States progress in its material Industries, 1850-1903 437 

United States, silver and gold productions, 1492-1902 520 

United States Steel Corporation, its share in steel output of U. S. .. 15 

United States steel corporation, share of iron and steel produced by. . . 65 

United States tariffs, effect on export trade 26, 62 

United States tariff history 8-12 

United States Treasury receipts, 1850-1903 437 

United States, United Kingdom and Germany, coal, consumption . . 61 

V 

Value of the factory to the farmer 148 

Value of home market 32 

Value of manufacturing Interest to farmer 31 

Value of principal farm crops, 1895 to 1903 114 

Value of protection to sheep and wool industry 151 

Vessels of U. S. in foreign and domestic trade, 1860-1903 405 

Victories of our Eastern diplomacy 324 

Vote for representatives in Congress, 1900-1902 423 

Vote for President, 1856-1900 425 

Vote for President by states in 1900 424 

w 

Wage earners and losses under low tariff 100 

Wage earners employed In manufacturing, 1850 to 1900 67 

Wage increase and decrease, 1890-1903 204 

Wages, abroad and at home 63 

Wages and cost of living, 1896-1903 208 

Wages, effect of trusts on 227 

Wages in cities of the United States and England 226 

Wages in Germany, affected by protection 63 

Wages in United States and England 36 

Wages, labor and prices , 200 

Wages of labor in the United States and England 222 

Wages of various occupations, 1890-1903 200-203 

Wages paid in tin plate manufacturing, U. S. and United Kingdom.. 86 

Wages paid by trusts before and after consolidation 230 

War Department, its work, 1897-1904 347 

Wealth and debt of leading nations 124 

Wealth and public indebtedness of principal countries 109 

Wealth, growth of, under protection 98 

Wealth of United States, growth of 37, 38 

Wealth, population area, etc., of United States, 1800-1903 442 

Western coast brought nearer European markets by canals 296 

Wheat, average value per bushel, 1870-1903 441 

Wheat, corn and oats, production and farm prices, 1885 to 1903.... 60 

Wheat crop of the United States and the world, 1877, 1903 141 

Wheat production, export and consumption of in U. S., 1877-1903.. 141 

Wilson law, imports of raw material under 42 

Wool consumption in United States, per capita 133 

Wool industry of United States, 1850 to 1900 92 

Wool . manufacturing development under protection 89 

Wool, production, importation and consumption 154 

Wool production of the United States, 1850-1903 440 

Work of the 58th Congress discussed 427 

Workingmen and capital in United States, English views on 53 

Workingmen, wages in United States and United Kingdom 36 

World's production of sugar, 1880-1903 158 

World's production of beet and cane sugar, 1840-1903 159 

World's shipping by countries and classes of vessels, 1904 405 



TABLES. XXI 



TABLES. 

Page. 
Exports to the countries protesting against the Dingley law 30 

National wealth of the United Kingdom, Germany and the United 

States, 1870 to 1903 38 

i 
Share which manufactures form of the imports and exports of 

Great Britain, 1860 to 1902 40 

Exports of manufactures from Great Britain and the United States 

respectively, 1860 to 1902 41 

Imports of manufactures into Great Britain and the United States 

respectively, 1860 to 1902 41 

Tin plate, exports from Great Britain, imports of the United States 

and protection in the United States, 1889 to 1901 54 

Revenue, surplus or deficit under low and protective tariffs respec- 
tively, 1790 to 1903 59 

Wheat, corn and oats production and farm value of, 1885 to 1903... 60 

Coal, production and consumption of in Great Britain, Germany and 

the United States, 1860 to 1902 61 

Trade balances under low and protective tariffs, respectively, 1790 

to 1903 62 

Relative^ increase in employment in leading industries in the United 

Kingdom and United States, 1881 to 1901 64 

Share of the iron and steel manufactures produced by the United 

States Steel Corporation 65 

Boots and shoes, prices of, 1897 to 1903 66 

Manufacturers of the United States, • value of products, capital In- 
vested and persons employed, 1850 to 1900 67 

Imports and exports and excess of imports or exports in each year 
from 1790 to 1903, grouped to show periods of low and 
protective tariffs respectively 68 

Revenue and expenditure and excess of revenue or expenditure, from 
1790 to 1904, grouped to show periods of low and protective 
tariffs respectively 69 

British revenue and source from which obtained 70 

Tariffs of Great Britain 71 

Steel rails, production, prices and rates of duty, 1867 to 1903 82 

Iron ore, prices, 1893 to 1903 83 

Tin plate exports from Great Britain, imports into the United 

States, manufactures in the United States, prices .84, 86 

Cotton manufacturing in the United States, capital, wages, etc., 

1870 to 1900 89 

Woollen, manufacturing In the United States, capital, wages, etc., 

1870 to 1900 90 

Silk manufacturing in the United States, capital, wages, etc., 1870 

to 1900 90 

Textile industry of the United States, capital, wages, etc., 1850 

to 1900 92 

Cotton products, manufacturing Imports and exports, 1884 to 1903. . 92 

Cotton production and prices and prices of manufactures of cot- 
ton, 1880 to 1903 93 

Conditions during administration of Cleveland, McKinley and Roose- 
velt 105 

Savings bank deposits in the United States, 1820 to 1903 107 

Savings bank deposits by states 108 

Savings deposits and number of depositors In principal countries 

of the world 108 



XX11 TABLES. 

Paqh. 
Bank deposits, (all classes of banks,) In the United States, 1875 

to 1903 109 

Wealth, debt, revenue and population of leading countries of the 

world 109 

National banks of the United States, 1863 to 1903 f. no 

Money in circulation in the United States by classes, and per capita, 

1800 to 1903 Ill 

Clearing house returns, 1880 to 1903 112 

Railroads placed in the hands of receivers and sold under fore- 
closures, 1876 to 1903 112 

Bank deposits in each state in 1892, 1896, and 1903 113 

Business failures in the United States, number and liabilities, 1880 

to. 1903 114 

Farm products, value, 1897 and 1904 114 

Farm animals, average value per head, 1897, and 1904 114 

Government expenditures and expenditures per capita in leading 

countries of the world 115 

Conditions in the United States in 1892, 1896, 1900 and 1903 116 

Prices of imported and domestic articles in March 1903 and 

March 1904 118 

Prices of certain "trust controlled" articles, 1896 to 1904 119 

National bank statistics, 1904 compared with 1893 121 

Conditions in the United States compared with those in Great Britain. 122 

Conditions in the United States compared with those of the principal 

countries of the world 122 

Growth of commerce of the United States compared with that of 

the United Kingdom and Germany 123 

Commerce of principal countries of the world, 1830 to 1903 123 

Expenditures and per capita expenditures of the leading countries 

of the world. 124 

Wealth and indebtedness of the leading countries of the world 124 

Manufactures of the leading countries of the world, value of 124 

Business and industrial record, 1893, 1896 125 

Imports and exports of the United States, 1790 to 1903 128 

Imports into the United States by great groups of articles, 1850 

to 1903 . . 129 

Exports from the United States by great groups of articles, 1850 

to 1903 T 130 

Imports into the United States from each Grand Division, 1850 

to 1903 131 

Exports from the United States to each Grand Division) 1850 

to 1903 132 

Imports for consumption arranged by groups, 1870 to 1903 133 

Merchandise imported and exported and retained for consumption, 

1871 to 1903 133 

Receipts and expenditures of the United States, 1790 to 1903 134 

Debt of the United States, 1865 to 1903, analysis of 135 

Farm products exported under McKinley, Wilson and Dingley laws.. 139 

Principal farm crops in the United States, value of, 1866 to 1903 139 

Farm animals, number and value, by groups, 1875 to 1904 140 

Wheat production, consumption and exportation, 1877 to 1903 141 

Farm animals, value of In 1892, 1897, 1900 and 1904 141 

Farm prices of principal products by states, 1892 to 1903 142, 143 

Prices of articles of farm production and consumption, 1877 

to 1903 144, 145 

Freight rates on grain from Chicago to New York, 1868 to 1903... 146 
Freight rates on live stock and meats, 1880 to 1903 146 



TABLES. XX111 

Page. 
Freight rates on flour and grain from Chicago to Europe, 1894 to 1903. 147 

Freight rates by rail and canal respectively, from Chicago to Buffalo 

and New York, 1870 to 1903 147 

Freight rates on canned goods, Pacific coast to New York, 1870 to 1903 147 
Value of the factory to the Farmer 150 

Manufactures of the United States, 1850 to 1900, value of products, 

also value in 1900 by groups 150 

Sheep, number and value of, under various tariffs 152 

Wool products, imports, woollen goods imported, price, etc., 1875 

to 1903 154 

Sugar production of the world, 1903-4 157 

Sugar, production, importation and consumption of the United States 

and prices per pound, 1880 to 1903 158 

Sugar production of the world, beet and cane, respectively, 1840 

to 1903 159 

Irrigation, statistics of the United States, number of farms and 

acres irrigated 163 

Wages per hour, 1890-1903 200, 203 

Increase in average wages per hour, 1890-1903 204 

Per cent of increase or decrease in hours of work, 1890-1903 205 

Employees, hours of labor and wages in certain countries 207 

Retail prices of food by articles, 1890-1903 209 

Retail prices of all foods, 1890-1903 210 

Summarization of employees, wages, and prices, 1890-1903 213 

Relative advance in prices of farm products and other commodities. . 217 

Relative advance in prices of related commodities 218 

Purchasing power of farm products in articles of common use 219 

Wages in the United States and Great Britain 223-224 

Increase in prices in England, 1896-1902 225 

Wages in cities of United States and England 226 

Retail prices in the United States and England 227 

Wages paid by trusts before and after combination 230 

Out of work benefits paid in certain years, 231 

State Labor Bureau reports 231-35 

Compensations paid to railway employees, 1896-1903 ..'. 236 

Labor laws in Republican and Democratic states 237 to 238 

Import prices of leading articles used in manufacturing 1897 to 1903. . 244 

Prices, annual average in 1880-90-1900 and 1903, 245 

Panama Republic dates of recognition by principal countries 274 

Distances between leading ports, via Panama and Suez Canals 283 

Exports to Asia and Oceania, 1896 to 1903 294 

Exports to the Orient, principal articles 1890 and 1903 294 

Commerce with Oceania 1893 to 1903 295 

Distances from Western coast cities to leading ports via Panama and 

Suez Canals 298 

Expenditures under military operations in the Philippines, Hawaii, 

commerce of 309 

Hawaiian Islands, commerce of 312 

Sugar exported from Hawaiian Islands, 1896 to 1903 312 

Importation of the Philippine Island from principal countries, 1897 

to 1903 317 

Commerce of Porto Rico and its commerce with the United States, 

1893 to 1903 318 

Commerce between the United States and its non-contiguous ter- 
ritories 319 



xxiv TABLES. 



T 



Page. 
Tropical productions imported by principal articles, 1870 to 1903 320-21 

Commerce of the United Kingdom with Its colonies, 1869 to 1902. . 321 

Commerce of countries commercially adjacent )<> th€ Philippine 

Islands, 1902 "•« 

National banks established In the United States, March 14, 1900, 
to April 30th, 1904 3- 

Postal receipts, 1893 to 1903 

Postal statistics of the United States, 1790 to 1903 370 

Naval expenditures of the principal countries of the world 378 

Money In circulation in the United States July 1, 1904 397 

American Merchant Marine, 1892 to 1903 398 

Shipping subsldities paid by principal countries of the world 401 

World's production of pig Iron, 1790 to 1903 404 

American merchant marine, 18G0-1903 405 

Merchant marine of the world, 1903 405 

Foreign carrying trade of the United States, 1860-1903 406 

Subsidies and payments for ocean mail service, 1848-1903 407 

Pensions and pensioners of the United States 408-10 

Colored officers, clerks and employees in the government service. . 45 

Vote for representatives in Copgress, 1900-1902 423 

Vote for President by states, 1900 424 

Popular and electoral vote for President, 1856-1900 425 

Conditions in McKinley and Bryan states of 1900 

Budgets of principal countries of the world, 1880-1902 435 

Military and naval expenditures of principal countries 435 

Progress of the United States in manufacturing, production, etc., 

1850-1903 437-440 

Progress of United States in population, area, production, business 

conditions, etc., 1800, 1903 441-442 

Railways in United States, mileage, earnings, freight and passengers 

carried, etc 444 

Financial and commercial statistics of principal countries 445' 

Iron and steel industry of the United States, capital, wages, and 

labor employed 446 

Iron and steel production of the United States, growth of 447 

Railway employes of the United States, 1893 to 1903 448 

Commerce of the gold standard and silver standard countries of the 

world 519 

Gold and silver product of the United States, 1792-1902 520 

Imports and exports of gold into and from the United States, 

1825-1903 521 

Commerce of the United States with Canada, 1850-1903 522 

Coinage of the United States' mints, 1846-1903 523 

Gold production of the world, 1492-1902 524 

Stocks of money in 13 principal countries 525 

Electoral vote cast by each state in each election, 1864 to 1900 549 

Electoral vote of each state and number necessary to choice in 1904. . 549 
■ 



"FOUR GREAT FACTS/ 

"Four great facts seem to justify vhe Republican party in ask- 
ing the voters of the United States to continue it in control o>" tne 
affairs of the Government. First, th3 pJ-p.riptness • v,*i-x , vv].'h«h ,it 
has fulfilled the pledges of its platform upon which it success- 
fully appealed to the people in 1896; second, the prosperity which 
has come to all classes of our citizens with, and as a resuit of, the 
fulfillment of those pledges; third, the evidence which that pros- 
perity furnishes of the fallacy of the principles offered by the 
opposing parties in 1896, and still supported by them; and, fourth, 
the advantages to our country, our commerce, and our people in 
the extension of area, commerce, and international influence which 
have unexpectedly come as an incident of the fulfillment of one 
of the important pledges of the platform of 1896, and with it the 
opportunity for benefiting the people of the territory affected." — 
From the Republican Campaign Text-Book of 1900. 

The above quotation from the opening pages of the Republican 
Campaign Text Book of 1900 applies with equal force to condi- 
tions in the present campaign. The four great facts which justi- 
fied the party in asking the support of the public in 1900 were: 
First, that its pledges of 1896 had been redeemed; second, that 
prosperity had come as a result; third, that developments since 
1896 had shown the fallacy of the principles upon which the 
Democracy then appealed for public support ; and, fourth, the con- 
ditions which had come to other parts of the world and their 
people as a result of promises fulfilled by the Republican party in 
the United States. These assertions made in the Text Book of 
1900 have been fully justified by the added experiences of another 
four years. The pledges of 1896 and those made in 1900 have been 
redeemed The Protective Tariff has been restored; the Gold 
Standard made permanent ; Cuba freed and given independence ; 
the Panama Canal assured under the sole ownership and control 
of the United States; a Department of Commerce and Labor 
established ; Rural Free Delivery given to millions of the agricul- 
tural community ; the laws for the proper regulation of trusts and 
great corporations strengthened and enforced; prosperity estab- 
lished ; commerce developed ; labor protected and given ample em- 
ployment and reward; intelligence, prosperity, and good** govern- 
ment established in distant islands; and the flag of the United 
States made the emblem of honor in every part of the world. 

All of these great accomplishments have been the work of the 
Republican party. In each of them it has met the discouragement, 
the opposition, and the hostilities of the Democracy. The Pro- 
tective Tariff was fought at every step, and is to-day denounced 
by the platform of the Democrats as a "robbery." The act estab- 
lishing the Gold Standard was opposed and the Democratic vote 
cast almost solidly against it, and that party in its convention and 
platform of 1904 deliberately refused to retract in the slightest 
degree its advocacy of the free and unlimited coinage of silver. 
In the war for the freedom of Cuba, the work of the Republicans 
was met with harsh criticism and discouragements at every 
step. In the efforts to establish peace and good government in 
the newly acquired territory, each step met with opposition and 
false charges and the demand that .the territory and its millions 
of people be abandoned to internal strife or control by a mon- 
archial government. The acquirement of the right to construct 
the Panama Canal was met with opposition and obstruction at 

1 



'J i 01 i: OBI a r PACTS. 

every point The enforcement of law against trusts and other 
i prorations aw denounced as ineffective ana designed to 

deoelte .the public. The establishment of rural free delivery was 
discouraged Tho u \ )h '"' i<l prosperity which followed the restora- 
tion u\' Uft protective tariff was decried and denounced as ficti- 
tious and temporary, and an attempt made to sow the seeds of 
dissatisfaction and discord among: the people by complaints of the 
higher cost of food which eanie as the natural results of the in- 
creased demand accompanying general prosperity and high wages. 
It is upon this additional evidence of the past four years, evi- 
dence that the Republican party is the party of progress, and the 
Democracy the party of inaction, retardment, and fault-finding, 
that the Republican party again confidently appeals for public 
support in the Presidential and Congressional elections of 1904. 



"THE POLICY OF OPPOSITION." 

Mr. Littletou's Real View of Democratic Pollcien and ProHpeet*. 

[Extract from speech before New York Southern Society, Feb. 22, 
1904, by Hon. Martin W. Littleton, sponsor for Judge Parker 
at Democratic National Convention, July 8th, 1904.] 

"While the war between the United States was 1 in Progress it 
(the Democratic party) attempted to swim against the tide on a 
policy that declared the war a failure, and met that fate which all 
parties have met that attempt it. 

"The Democratic party sought to destroy the evil of some mon- 
opolies by assuming an antagonistic attitude to all large corporate 
concerns just at a time when the business of the country was 
being conducted almost wholly by corporate agency, and it went 
down under the influence of a fact. 

"It attempted to arrest the course of events in the Spanish- 
American war just at a time when our fleets were fighting and 
or. armies marching, and it went down again under the influence 
of a fact. 

'It endeavored to undo events which had taken place in the 
Philippines and to reverse an accomplished thing, and it went 
down under the weight of a fact. 

"It is now seeking to delay the progress of a great commercial 
enterprise on the Isthmus of Panama by opposing the treaty with 
the new republic just at a time when the nation, and especially 
the South, needs and demands' such an enterprise, and it will again 
go down under the influence of a fact, if it persists. 

"It sought to change the money standard of the country from 
gold to silver just at a time when the powerful nations of the earth 
were holding or changing to gold, and it went down under the in- 
fluence of another fact. 

"The policy of opposition is not the true tradition of the party. 
It held for nearly fifty years the affirmative place in the politics 
of the country. It stood upon aggressive grounds, it recognized 
events, it was not a doctrinaire, it held to the facts. It was until 
the war a constructive party of conservative principles, and under 
the misfortune of slavery it paused to defend that institution, and 
allowed the Republicans to take the ground from it, and since that 
time it has' thought it wise to oppose its own policies, if they 
chanced to be espoused by the Republicans. 

"It does not need to return to ante-bellum policies', but it 
does need to go back to the ante-bellum method of dealing with 
events. It must understand that if Jefferson said he was opposed 
to expansion, and then proceeded to expand, what he did is* the 
thing, and not what he said. It must understand that if he said he 
was opposed to a Navy, and then found it necessary to establish a 
Navy, what he did is the thing, and not what he said. It must 
understand that if Madison or Monroe said that they were opposed 
to national banks, but found they were necessary to establish a 
sound financial system, and did establish them, what they did is 
the thing, and not what they said. It must understand that if 
Jefferson, Madison, Monroe. Calhoun, Jackson, and Benton all in- 
sisted that the Constitution should be strictly construed, but found 
on actual experiment that it was' best to give it a liberal con- 
struction, and did so, what they did is the thing, and not what they 
said." 



INTRODUCTION. 



INTRODUCTION. 

The purpose of this book is to furnish in concise and con- 
venient form for reference such information as is likely to be re- 
quired by speakers, writers and others participating in the dis- 
cussions of the Presidential campaign of 1904. However well ad- 
vised the speaker or writer may be upon the topics of the cam- 
paign, he will require for reference many facts and figures which 
can only be had by consulting numerous publications, many of 
them so bulky as to be practicable for desk use only. This work 
is intended to present in concise and portable form the more im- 
portant of these facts and figures, so condensed and arranged as 
to be convenient for ready reference in the field, on the stump, 
upon the train, or wherever they may be desired. The arrange- 
ment of the book will be apparent upon an examination of the 
table of contents which occupies the opening page. It will be seen 
that each of the subjects likely to require discussion in the cam- 
paign is treated under its proper title and that these discussions 
of the various subjects are followed by such statistical statements 
as may be required for further reference, while a copious index 
which follows the table of contents and occupies the opening pages 
of the book will, it is hoped, enable those utilizing the volume 
readily to find the detailed facts which they may require for 
instant reference. Care has been exercised so to arrange the mat- 
ter with headings and subheadings as to add to the convenience 
of the volume as a reference work, while a line at the top of each 
page indicates the general subject discussed upon the page. The 
statistical and historical statements presented in the discussions 
have been carefully verified and the authority, in the more impor- 
tant statements, cited, while the tables are in most cases from 
official publications of the Government or from accepted authori- 
ties *and duly accredited, thus enabling those utilizing them to 
quote their authority for the figures presented. 

While a text book which must be a pocket companion in the 
field is necessarily limited in size, it has been deemed proper to 
present as fully as practicable in a book of this character infor- 
mation upon subjects likely to receive especial attention, and the 
space allotted to the chapters on Tariff, Trusts, Wages and Prices, 
the Philippines, and the Work of the Army has been adjusted to 
the possible requirements of those desiring information upon these 
subjects. Much unfounded criticism has been offered by the Dem- 
ocrats with reference to the enlargement of the army and the 
expenditures under its operations, and it has therefore been 
deemed proper to present somewhat in detail information regard- 
ing the work which it has so successfully accomplished both in 
war and in the development of conditions at home vital to the 
general requirements of a great nation and to the fact that the 
great expenditures under its operations have been made with the 
utmost fidelity. The criticisms of the work of the party in regard 
to the Philippines, coming from a party which has already the 
record of having hauled down the American flag in islands of the 
Pacific suggest the importance of a full presentation of the splen- 
did work done in those islands and the improved conditions there 
which have resulted. The constant but unfounded assertions that 
cost of living has advanced more than wages justifies the detailed 
discussion of this subject which will be found in the chapter en- 
titled "Labor, Wages, and Prices," and especial attention is called 
to the information there presented which fully disproves these 
assertions. This information is especially valuable by reason of 
its official character, being the work of the Bureau of Labor, 
whose accuracy and absolute fairness have never been called in 
question, and also by reason of the further fact that it brings the 
study of the relative advance in wages and cost of living down to 
the very latest date, covering fully the year 1903 with reference 
to retail prices — the prices which directly affect the consumer and 
wage-earner. These facts are the result of studies given to the 
public by the Bureau of Labor in its July, 1904, Bulletin, and 
therefore the very latest, most complete, and absolutely reliable 
information upon this vital topic, and will fully answer the asser- 
tions of the Democracy upon this subject, 



4, INTRODUCTION. 

While many of the facts, historical and statistical, here pre- 
sented are, In general terms at least, familiar to a large number 

of those who will have occasion to utilize this work, their presen- 
tation in convenient form for reference is deemed proper In view 
of the tact that of the 20 millions of potential voters in t lie United 
States in I'.iol a Large number have never before had opportunity 
to participate in a Presidential election and-i:hereforo require spe- 
cial Information of a fundamental Character, and seems to justify 
the inclusion in this volume of many statements generally familiar 
to those who have had longer experience in national affairs. 

Two other publications, intended for the convenience and use 
of speakers, have been issued and should be consulted by those <!«■ 
siring thoroughly to prepare themselves for the discussions of the 
campaign. 

One of these volumes, entitled "Pages from the Congressional 
Record," contains the more important speeches delivered in Con- 
gress upon the subjects likely to be discussed in the present cam- 
paign, including the Tariff, Trusts, Labor, Reciprocity, the Treaty 
with Cuba, the Panama Canal, the Philippines, the Relations with 
the Orient, the Record of the Republican Party and the Present 
Administration, the Post-Office Department Investigation, Rural 
Free Delivery, Government Expenditures, the Merchant Marine, 
the Navy, the Old Age Pension Order, and other subjects of this 
character. These speeches are in many cases the result of much 
careful study of the subjects discussed, studies made by men 
thoroughly familiar with national affairs and able to obtain the 
best and latest information bearing upon the subjects under con- 
sideration, and should be of great assistance to those desiring 
thoroughly to acquaint themselves with every feature of the great 
subjects to be considered in the present campaign. Not only do 
they present the views and arguments of the speakers upon the 
subjects to which these discussions are respectively devoted, but, 
since they are verbatim reports of the Congressional proceedings, 
they include in many -eases the arguments of the opposition in- 
jected into the speech in the form of questions and answered by 
the speaker in the running debate, which frequently form an 
important and instructive feature of the speech itself. This docu- 
ment, which contains several hundred pages of the size of the 
Congressional Record, while too bulky for other than desk use, 
will prove valuable to those desiring to have in a single volume 
the latest and best discussions upon these rvital subjects by men 
who have studied them under exceptionally advantageous circum- 
stances. 

Another volume, entitled "Extracts from the Congressional 
Record," contains brief extracts from speeches delivered in Con- 
gress upon subjects likely to be discussed in the present campaign. 
This work was compiled with great care from speeches and ad- 
dresses by leading members of the party, not only in the recent 
Congress but in earlier sessions of that body, and contains the best 
utterances of the party leaders during its entire history upon the 
great subjects likely to be considered in this campaign. Protection, 
Reciprocity, Trusts, Prices, Republican Prosperity, Democratic Ad- 
versity, the Workingman, the Farmer, the Soldier, the Colored 
Voter, Rural Free Delivery, the Post-Office Investigation, Panama, 
Cuba, the Philippines and the Pacific, Shipping, the Navy, and 
the Record of President Roosevelt are discussed in these concise 
extracts from the public utterances of party leaders past and 
present. The volume containing these extracts is of such com- 
pact size and form that it may readily be used as a pocket com- 
panion, in the field or on the train, and will prove a valuable sup- 
plementary work in connection with this text book. 

Both of the above volumes, "Pages from the Congressional 
Record" and "Extracts from the Congressional Record," may be 
obtained upon application to the National Committee. 



THE TARIFF. 



THE TARIFF. 

"We denounce Protection as a robbery."— Democratic Plat form , 1904. 



"Protection which guards and develops our industries is a cardinal 
policy of the .Republican party."— Republican Platform, 1904. 

The question as to whether tariffs should be levied solely for 
the purpose of producing revenue or should also be so adjusted as 
to protect domestic industries from undue foreign competition has 
been a controverted one for many years — through generations in 
fact. 

The primary idea in levying a tax upon merchandise entering 
a community or State was to require persons from abroad trading 
in that community to bear their proper share in the public ex- 
penditures. The tranquillity and order of the community, 
and hence its commercial possibilities, were maintained 
by the government, for whose support the local producers 
and merchants were taxed, and it was held that merchants from 
abroad desiring to enjoy the privilege of trading in that com- 
munity should contribute their proper share to the maintenance 
of the government, which assured commercial privileges,*and that 
they should contribute a relatively larger percentage of the value 
of the merchandise sold than was required of the local dealer, 
because the foreign merchant carried away with him his profits 
while the domestic producer or dealer expended his profits in the 
home community in the support of his family or in the employ- 
ment of other members of the community. Hence the tariff — a 
tax upon merchandise entering a community from abroad. 

While it is true that the actual payment of tariff duties is, 
under modern methods, made by the residents of the community 
who import the merchandise or act as local agents for the foreign 
producer, it is also true that at least a part of this is compensated 
for by the foreign producer or dealer through a reduction in his 
prices as an offset to the duty which the importer must pay. The 
claim that the foreign producer or merchant pays at least a part 
of the tariff levied on imported goods is now admitted in free- 
trade England, whose manufacturers and merchants have had 
long practical experience as sellers to high tariff countries and 
are now urging the adoption of a protective tariff system for 
their own country. 

ALL NATIONS HAVE TARIFFS. 

All nations raise a large share of their revenue by a tariff. 
The view which many have held that "free-trade" nations, such as 
the United Kingdom, have no tariff is an erroneous one. The total 
amount collected from tariff duties on merchandise entering the 
United Kingdom is more than 150 million dollars per annum — a 
larger sum per capita of her population than the per capita of 
tariff collected in the United States. See discussion of British 
tariff, page 70. 

This sum, however, is collected from duties levied upon non- 
competing articles, such as coffee, tea, tobacco, etc. This illus- 
trates the difference between the methods of the free-trade and 
the protective-tariff schools. Under methods of the free-trade 
school tariff duties are placed upon articles of general consump- 
tion with the sole purpose of raising revenue, which articles must be 
obtained solely from abroad, while under protective tariffs they 
are levied upon articles of a class which can be produced at home 
and which if brought in in unlimited quantities and without pay- 
ment of tariff taxes would place the cheap labor of foreign coun- 
tries in direct competition with home labor. 

The question upon which men have divided 1 with reference to 
tariff, then, is not as to the wisdom of collecting funds through 
tariff taxation, but whether the tariff shall be so adjusted as to 
protect home producers and workmen from undue competition by 
low-priced labor abroad, as well as to encourage the establish- 
ment of new industries through similar protection. 



6 THE TABirr. 

DANGER FROM OUTSIDE (COMPETITION CONSTANTLY INCREASING. 

Originally the danger to domestic industries from foreign com- 
petition was much less than at the present time. Merchandise 
brought into any country from abroad must first bear the cost of 
transportation, and in times when the cost of transportation was 
great, and when goods were necessarily transported by animal power 
and by sailing vessels only, this high cost of carriage was of itself 
a protection to the domestic producer in any country. True, the 
producer of merchandise just across the border line of a country 
had an enormous advantage over the producer a thousand or five 
thousand miles distant, but as only a small proportion of the pro- 
ducers were located near to the border line such coun- 
tries did not find it necessary to establish high tariffs 
to protect their own producers or manufacturers. The 
distance which foreign goods must be carried and the 
cost of transportation over that distance alone serve to 
create a protective wall for the domestic producer. In late years 
those conditions of distance and transportation have absolutely 
changed. The railroad and the modern steamship have reduced 
the cost of transportation compared with that in the early part or 
even in the middle of the century just ended; while the telegraph 
and the telephone have annihilated distance and time. Merchan- 
dise from the interior of Europe, ordered by telephone, telegraph, 
and cable, transported from its place of production by trolley road, 
canalized, rivers, or boats operated by steam or electricity, or by 
railway to the Atlantic, and thence by great steamships, built to 
carry hundreds of carloads at a single voyage, across the ocean, 
and again transported to the interior of the United States by the 
cheapest land transportation ever known to man, can be placed 
at the door of the consumer in the Mississippi Valley for a very 
small percentage of the cost of transporting the same at 
the middle of the last century. As a result the pro- 
tection which distance and the cost of transportation af- 
forded to the local producer has disappeared, and without a pro- 
tective tariff, established by the Government, he has as his direct 
competitor the low-priced labor of any and every part of the 
world. The cheap labor of the densely populated countries of 
Europe, the 140 million low-priced workers of Russia, the 300 
million people of India, whose average wage is» but a few cents 
per day, and the 400 million workers of China are to-day as much 
the competitors of the workman of the United States as though 
they were located but just across the border. Modern methods of 
transportation and communication have brought these great masses 
of producers to our very doors, and without the protection which 
the tariff affords would place that cheap labor in as close competi- 
tion with our own as it would have been a half century ago if 
located but a hundred miles away. 

DESTRUCTION OF NATURAL PROTECTION. 

As an example of the reduction in cost of transportation may 
be cited the fact that the annual average freight rate on wheat 
from Chicago to Liverpool, by the cheapest method of trans- 
portation, in 1873 was 40 cents per bushel and in 1903 
8 cents per bushel, or but one-fifth that of only 30 
years earlier. Comparing conditions now with those of 
the early part of the last century- the reduction is still 
greater, and the cost of transportation at the present time may 
safely be said to be less than one-tenth of that then existing. An 
illustration of the reduction in cost of transportation througli 
modern methods is found in the fact that the census of 1880 
showed that the railways could transport a ton of wheat for a 
given distance as cheaply as a single bushel could be transported 
the same distance by horse power, and railway rates have fallen 
practically one-half since that time. That high authority the 
Encyclopedia Britannica states in its 1903 edition that the me- 
chanic in Liverpool may now pay with one day's wages the entire 
cost of transporting a year's supply of oread and meat for one man 
from Chicago to that city. 

These facts illustrate how completely, modern methods have de- 
stroyed the protection Which the local producer formerly had 
against foreign competitors, and explain the reason why modern 
governments have found it necessary, one by one, to adopt the pro- 



THE TARIFF. 7 

tective system, until now the most ardent and only remaining sup- 
porter of the nonprotective system, the United Kingdom, is seri- 
ously discussing the adoption of a protective tariff. This gradual 
destruction of the natural protection formerly afforded by distance 
and cost of transportation accounts for the fact that it has been 
found, necessary to maintain the protective tariff on the various 
industries as they have developed, and that this necessity for 
maintaining protection for those industries has meantime been 
recognized by all other leading manufacturing countries of the 
world whose industries were developed even before those of the 
United States, except in the case of the United Kingdom, whose 
people are now clamoring for a return to protection of their long 
established domestic industries. This reduction in cost of trans- 
portation is indeed one of the chief causes of the steady movement 
toward protection which has characterized the history of the 
world during the last half century. The fact that, with improved 
methods of transportation and a narrowing of distances and cheap- 
ening of cost of transportation, the whole world has become the 
next-door neighbor of each community has compelled that com- 
munity to establish tariff duties of a character which would reduce 
the competition offered by the cheap labor of those communities 
against which distance no longer affords protection. 

Practically all of the 500,000 miles of railway and 16 million 
tons of steamship tonnage with which the world is now supplied 
have been created since the middle of last century; the world's 
international commerce has quadrupled while the world's popula- 
tion was increasing but 50 per cent, and during that very period 
the nations of the world have one by one found it necessary to 
establish tariff protection to take the place of that protection 
which distance and high cost of transportation formerly afforded. 

TARIFFS OF OTHER COUNTRIES. 

France, which adopted a protective system in the early part of 
the nineteenth century, experimented briefly with free trade between 
I860 and 1880, but promptly returned to the protective system, 
which she has maintained ever since that time with great pros- 
perity to her people. Germany experimented with free trade be- 
tween 1868 and 1878 by a reduction of the tariff schedules of the 
Zollverein, but gladly returned to protection in 1879 and 1881, and 
since that time the development of German industries and the 
progress and prosperity of the nation and its people have com- 
manded the attention and admiration of the whole world. Russia 
had a protective tariff system in the early years of the 
last century which she abandoned in 1819, but after ex- 
periments in the line of free trade gradually returned to the 
protective system, and under it has developed in recent 
years manufacturing industries of great magnitude. Austria- 
Hungary experimented between 1853 and 1882 with a series of 
comparatively low tariffs, but in 1882 restored thoroughly protec- 
tive duties and has further increased them since that time, develop- 
ing a great manufacturing system and prosperity far greater than 
that of earlier years. Italy had low tariffs prior to 1870, but 
began about that time a system of protection, adding articles from 
time to time to the tariff schedule and making her tariff system a 
thoroughly protective one, resulting in a rapid development in re- 
cent years of her manufacturing industries and in generally im- 
proved conditions. Belgium adopted a protective tariff system in 
1844, and under it her manufacturing industry has become of 
greater importance in proportion to population than that of almost 
any other European country. Netherlands adopted the pro- 
tective system in 1845, abandoning it in 1862, but has now taken 
a step toward a return to protection, a tariff measure increasing 
the rates of duty on manufactured articles having been recently 
sent by the Government to the legislative body with a recommenda- 
tion for its adoption. Sweden and Norway have, after experi- 
ments with low tariffs, adopted a protective system which is de- 
scribed by Curtiss as "perhaps on the whole more protective than 
that of any other European country," the tariff act of 1892 having 
been termed the "McKinley Bill of Sweden." Spain and Portugal 
experimented with free trade from 1859 to 1882, unsuccessfully, 
and have since those experiments materially increased their tariff 
rates with a strong protective tendency. In other parts 



8 THE TARIFF. 

of tho world protection is also gaining steadily. The prin- 
cipal British colonies Canada, South Africa. Australia, and 
New Zealand— have adopted protective tariff systems. India lias 
recently Increased her tariff rates. Japan a couple of years ago 
adopted a new tariff which increased and in some cases doubled 
the raics of <luty, especially those on manufactured articles. 

BRITISH REVOLT AGAINST FREE TRADE. 

In the United Kingdom, which has been pointed out by free 
traders as a marked example of the success of their system, lead- 
ing statesmen are now urging the abandonment of that system 
and a return to protection; and are supporting their proposition by 
statements showing that the export trade of the protected coun- 
tries has grown much more rapidly than that of free-trade Eng- 
land, and that in the absence of protection against those countries 
English manufacturers and workingmen are being deprived of 
their home markets through large importation of manufactures 
from other countries. The official reports of the British Govern- 
ment show that the imports of manufactured goods into the 
United Kingdom increased 71 per cent between 1880 and 1901, 
while into the protected country of Germany the increase was 
only 36 per cent, into France 28 per cent, and into the United 
States 20 per cent in the same period. In exports of manufac- 
tured goods the British official figures show that the United King- 
dom increased only 12 per cent from 1880 to 1901 ; France, 22 per 
cent ; Germany, 73 per cent, and the United States 300 per cent 
in the same period. It is because of stubborn facts such as these 
that the United Kingdom, which has stood out in favor of free 
trade while all the rest of the world is abandoning it, is now pro- 
posing to adopt protection. For British tariff see page 70. 

Tariffs of the United States. 

The question of raising revenues was one of the chief motives 
in the formation of the national constitution. The different 
states or colonies under the confederation were levying duties 
either for revenue or for the protection of their manufactures in 
competition with other colonies or states, and thus conflicts arose 
and it seemed necessary to have uniformity and also provide a 
certain and effective way for raising revenue to carry on the 
operations of the general government. There was a prejudice 
against levying taxes upon property in the colonies for this 
purpose, therefore it was in the minds of those who framed the 
constitution that the principal source of revenue would be found 
in the levying of duties upon foreign imports, so that one of the 
compromises of the constitution provided that direct taxes should 
be levied upon the basis of population, and not upon the basis 
of property. It was also then generally believed that the im- 
position of duties upon imports would gradually stimulate and 
develop manufacturing industries in our own country. So that 
under the constitution the power given to Congress to levy 
duties on imports was a plenary one, and not subject to limita- 
tion either as to rates of duty or as to the articles upon which 
duties should be levied. It was expected that the revenue for 
national purposes would be chiefly derived from tariff duties, 
and although there was a difference of opinion as to the rates 
of duty, the general purpose of a tariff law T was distinctly stated 
in the first tariff act under the constitution in 1789, which purpose 
was declared as follows : "Whereas, it is necessary for the sup- 
port of government, for the discharge of the debts of the United 
States and the encouragement and protection of manufactures 
that duties be levied on goods, wares, and merchandise imported, 
etc., etc.," thus showing in the beginning the general view as 
respects this subject. This view was the generally accepted one 
for a considerable time, but later, owing to a diversity of interests 
as between the several states and to the partial localization of 
manufactures and the rapid development of the growth of cotton, 
it was urged that the impositions of such a tariff worked in- 
jury to one part of the country for the benefit of another, there- 
fore, the question was raised whether a tariff should be raised 
solely for the purpose of raising revenue or should also be so 
adjusted as to protect domestic industries from undue foreign 
competition. The agitation of this question was stimulated by 
the agitation of free trade in Great Britain, having for its chief 
Durnose the reneal of the corn laws. 



THE TABIFF. 9 

Thus from the beginning the obtaining of revenue and the 
encouragement and protection of manufactures were united as 
motives for levying duties on articles imported. This mode at 
that time generally prevailed in foreign countries, and received 
general acquiescence here, and thereby in levying a tax upon mer- 
chandise entering a community or state, persons from abroad 
trading in that community or state were required to bear their 
proper share in the expenditures of such community or state. 

THE PROTECTIVE THEORY IN EARLY TARIFFS. 

The protective theory was recognized in the first tariff of the 
United States, which declared in its opening words that — 
"Whereas it is necessary for the support of government, for the 
discharge of the debts of the United States, and the encourage- 
ment and protection of manufactures that duties be levied on 
goods, wares, and merchandise imported," etc. That tariff im- 
posed duties upon about 75 articles, the rates of duty ranging 
from iy<z to 15 per cent on those articles upon which an ad 
valorem duty was imposed, though on more than half of the arti- 
cles named the rates of duty were specific. One year later an ad- 
ditional number of articles were placed upon the dutiable list, still 
others in 1792, and again in 1794, the average rates on dutiable 
articles by that time reaching 13 per cent. In the year 
1812 the war tariff doubled the rates of duty, making an 
average rate of 32.7 per cent, alid under that tariff, coupled with 
the stimulus given by the war, occurred great activity in manu- 
facturing. 

In 1816 the Lowndes-Calhoun bill went into effect, giving an 
average rate of about 26 per cent, which, however, was too low 
to prevent vast importations from England which were sent at less 
than cost prices with the distinct purpose of crushing out of ex- 
istence the infant industries which had been developed during pre- 
ceding years, and especially during the short protective period 
from 1812 to 1816. 

TARIFF OF 1824. 

In 1824 a higher protective tariff was enacted, giving an 
average rate on all imports of 37 per cent, and in 1828 this 
was increased to bring the average up to about 48 per cent, and 
continued in operation until 1834. During that time great pros- 
perity came to the people of the United States, both to the manu- 
facturing industries and to those supplying the food and materials 
consumed by persons engaged in those industries. Henry Clay, 
commenting on conditions of that period, said : "If the term of 
seven years of the greatest prosperity which its people have en- 
joyed since the establishment of their present Constitution were to 
be selected it would be exactly that period of seven years which 
immediately followed the passage of the tariff act of 1824." Major 
McKinley, commenting later upon conditions of that period, said : 
"The entire country, under that tariff, moved on to higher triumphs 
in industrial progress, and to a higher and better destiny for all of 
its people." President Jackson, in a message to Congress in 1834, 
the year prior to the repeal of this protective tariff law, said : 
"Our country presents on every side markets, prosperity, and 
happiness unequaled perhaps in any other portion of the world." 

LOW TARIFF AND THE CRASH OF 1837. 

In 1833, however, under pressure of the low tariff supporters the 
Clay compromise tariff act was passed, reducing the rates of duty 
and providing for a further gradual reduction during a term of 
years to bring the average rate on all imports down to about 17 
per cent. This was followed by a decline in trade and industry, 
by an inundation of foreign goods, by financial depression, assign- 
ments and bankruptcies, until the culmination came in the finan- 
cial crash of 1837, one of the most appalling and disastrous finan- 
cial revulsions ever known, the revenue so falling off that the 
Government was obliged to borrow money at high rates of interest 
to pay current expenses, while workingmen were idle, the farmers 
without markets, and their products sold by sheriff to pay debts. 

In 1842 a protective tariff was enacted which was followed by 
general prosperity during the short period of four years in which 



10 U1K 1AKI1I. 

it was in operation. So prosperous wns the country under this 
that President Polk, in his message of December, 1846, said : "La- 
bor in all its branches is receiving an ample reward, and the 
progress of our country in her career of greatness, not only in 
extension of territorial limits and in the rapid increase of her 
population but in resources and wealth and the happy condition 
of her people, is without an example in the history of nations." 

THE WALKER TARIFF. 

At that very date (December, 1846), however, the celebrated 
Walker tariff went into effect, making a general and great reduc- 
tion in duties, being a thoroughly free-trade measure in its prin- 
ciples. The war with Mexico, the discovery of gold in California, 
and the unusual demand abroad for agricultural products main- 
tained prosperity in the United States during the earlier years of 
this Walker tariff, but much of the gold was drawn abroad in 
payment for the foreign goods imported and within a few years 
came a great depression, the closing of manufacturing establish- 
ments, lack of employment for labor and lack of home markets for 
the farmer. In 1850, Mr. Samuel Bowles, editor of the .Springfield 
Republican, and other representative citizens of Massachusetts 
sent a petition to Congress entreating it to revise the tariff of 
1846 in the interest of protection, and saying: "Previous to the 
passage of that law the manufacturing and mechanical interests of 
this community were in a flourishing condition. Since that time 
the condition of things has entirely changed, and it is fully be- 
lieved that much of the stagnation of business will be traced to 
the operation of that law. Manufacturing languishes, mechanics 
are thrown out of employment, business of all kinds is 'dull, and 
unless protection can be afforded to our laboring classes poverty 
will overtake them." In 1854 Hunts's Merchant Magazine, a well- 
known free trade journal of that period, said: "Confidence is 
shaken everywhere and all classes are made to realize the inse- 
curity of worldly possessions. The causes which led to this have 
( been a long time at work. Goods which had accumulated abroad 
' when the demand had almost ceased were crowded upon our 
shores at whatever advance could be obtained, thus aggravating 
the evil." The answer, of Congress to these appeals, however, was 
a further reduction of duties made in 1857, and this was followed 
by a panic and commercial ruin, and such conditions that the 
Government was compelled to pay as high as 12 per cent and 13 
per cent for money borrowed to pay the running expenses of the 
Government Of this condition President Buchanan, the last Dem- 
ocratic President before Grover Cleveland, said in his message of 
1860: "With unsurpassed plenty in all the productions and all the 
elements of natural wealth, our manufacturers have suspended, 
our public works are retarded, our private enterprises of different 
kinds are abandoned, and thousands of useful laborers are thrown 
out of employment and reduced to w r ant. We have possessed all 
the elements of material wealth in rich abundance, and yet, not- 
withstanding all these advantages, our country in its monetary 
interests is in a deplorable condition." 

TARIFFS AND CONDITIONS SINCE 1861. 

In the 36th Congress a majority of the House of Representa- 
tives, being Republican, favored the substitution of a protective 
tariff for the amended tariff of 1846, and under the leadership 
of the then Chairman of the Committee on Ways and Means. Mr. 
Morrill, of Vermont, the House of Representatives during the long 
session of 1859-60 passed a protective tariff measure, which, during 
the short session of 1860-61, after the abdication of many Southern 
Senators, received a majority in the Senate, and was signed by 
President Buchanan before he vacated his office in March, 1861. Thus 
with the advent of the Republican party to control came 
the adoption of the protective system, and this became perma- 
nently a part of the policy of the Government until 1894, when the 
Wilson-Gorman low tariff act was passed. The prosperity which 
developed during that period is so well known that it need scarcely 
be alluded to. The value of farms and farm property increased 
from a little less than 8 billions of dollars in 1860 to over 16 
billions in 1890, as shown by the United States census. The value 
of farm animals increased from one billion dollars in 1860 to 2y 2 



run; TARIFF. 11 

billions in 1890. The value of manufactures increased from less 
than 2 billion dollars in 18(30 to 9 billions in 1890 ; the wages and 
salaries paid to persons employed by the manufacturing industries 
increased from 379 million dollars in 1860 to 2,283 millions in 1890. 
The deposits in savings banks grew from 150 million dollars in 
1860 to 1,712 millions in 1892, or about 12 times as much in 1892 
as in 1860. Meantime the national debt, incurred by the war, had 
been reduced from 2,636 million dollars in 1866 to 841 millions in 
1892 ; the per capita indebtedness from $77 in 1865 to $13 in 1892, 
and the annual interest charge per capita from $3.98 in 1865 to 35c 
cents in 1892. Imports during that long period of protection increased 
from 353 million dollars in 1860 to 827 millions in 1892, and ex- 
ports increased from 333 millions in 1860 to over one billion dol- 
lars in 1892. The share which manufacturers' raw materials 
formed in the imports increased from 17 per cent in 1860 to 24 per 
cent in 1892, and the share which manufactured articles ready 
for consumption formed in the imports fell from 35 per cent in 
1860 to 17 per cent in 1892. The manufacturers of the country 
not only supplied the home markets which had been heretofore 
supplied from abroad, but increased their exportation of manufac- 
tures from 40 million dollars in 1863 to 160 millions in 1892; and 
the farmers not only supplied the greatly increased demand of the 
home market but increased their exportation of agricultural pro- 
ducts from 256 millions in 1860 to 798 millions in 1892. As a re- 
sult of this unexampled activity and prosperity the money in cir- 
culation 3n the country grew from 435 million dollars in 1860 to 
1,601 millions in 1892, and the amount per capita increased from 
$13.85 in 1860 to $24.56 in 1892. Wealth meantime increased from 
16 billions of dollars in 1860 to 65 billions in 1890, and the per 
capita wealth from $514 in 1860 to $1,038 in 1890. 

THE WILSON-GORMAN TARIFF. 

Then followed the Wilson-Gorman low-tariff law. True, it was 
not enacted until 1894, but the election in 1892 of a Democratic 
President and Congress notified the people of the United States 
that a change in the tariff might be expected, and from that- mo- 
ment business began to decline. The certainty of a tariff reduc- 
tion, coupled with the uncertainty as to how great its extent might 
be upon each individual article, caused the manufacturers to im- 
mediately curtail their production, and the reduction of employ- 
ment which followed reacted upon all classes in a reduction of 
the demand for their products and a reduction of price for that 
which found a market. As a result the bank clearings, that great 
barometer of business conditions, fell from 61 billions of dollars in 
1892 to 52 billions in 1896, the year of the election of McKinley, 
whose very name was a promise of protective tariff. Money in 
circulation fell from 1,601 million dollars in 1892 to 1,506 millions 
in 1896, and the per capita from $24.56 in 1892 to $21.41 in 1896. 
Exports fell from 1,015 million dollars in 1892 to 863 millions in 
1896 ; those of agricultural products alone falling from 798 mil- 
lions in 1892 to 570 millions in 1896, while imports of manufac- 
tured articles ready for consumption increased from 142 millions 
in 1892 to 160 millions in 1896. The revenue of the Government 
fell off and loans became necessary to meet the current expendi- 
tures, and as a result the national indebtedness increased from 
841 million dollars in 1892 to 955 millions in 1896— all during a 
time of profound peace. The effect upon all industries was 
strongly marked. The value of animals on farms fell from 2,461 
million dollars in 1892 to 1,728 millions in 1896 ; the production of 
wool, under free trade in that article, fell from 294 million pounds 
in 1892 to 272 millions in 1896 and its value from 59 
million dollars in 1892 to 33 millions in 1896; and the 
value of sheep on farms from 45 million dollars in 
1892 to 38 millions in 1896. Pig-iron production fell 
from over 9 million tons in 1892 to 6% millions in 
1894. Rates of wages were reduced in all lines of industry ; mil- 
lions of men were out of employment, and as a result prices of 
farm products were greatly reduced. Railroad building, which 
had been proceeding at the rate of from four to five thousand 
miles per annum, fell to 1,700 miles in 189a Over 25,000 miles of 
railway, or one-third of the total of the country, went into the 
hands of receivers, and the wages of their employes were greatly 



12 THE TABIFF. 

reduced. As a result of these conditions the commercial failures 
Increased from 10,344 in number in 1892 to 15,244 in 1893 and 
15,088 in 1890, and the amount of liabilities from 114 million dol- 
lars in 1892 to 340 millions in 1893 and 226 millions in 1896. 

THE PRESENT TABIFF. 

Following the election of William McKinley and a Congress 
Republican in both branches a special session was held as soon as 
possible after McKinley's inauguration, and a protective tariff — 
that now upon the statute books — enacted. Under it has come 
prosperity to every branch of industry and prosperity to the Gov- 
ernment as well as to its people. The interest-bearing debt, neces- 
sarily increased by reason of the war with Spain, has been re- 
duced from 1,040 million dollars in 1899 to 895 millions in 1904; 
the per capita indebtedness from $15.55 in 1899 to $11 at the 
present time, and the annual interest payments from 40 million 
dollars in 1899 to 25 millions at the present time. The money in 
circulation has increased from 1,506 million dollars in 1896, the 
year of McKinley's election, to 2,503 millions on March 1, 1904; 
the per capita money in circulation from $21.41 in 1896 to $30.75 
on March 1, 1904 ; the bank clearings from 51 billion dollars in 
1896 to 114 billions in 1903 (having thus more than doubled), and 
the total bank deposits from 4,916 millions in 1896 to 9,673 millions 
in 1903. Farm animals increased in value from 1,728 millions in 
1896 to 3,102 millions in 1903; pig-iron production from 8% mil- 
lion tons in 1896 to 18 millions in 1903 ; steel production from 5^4 
million tons in 1890 to 15 millions in 1903 ; coal production from 
171 million tons in 1896 to 270 millions in 1902 ; the value of min^ 
erals produced from 623 million dollars in 1896 to 1,260 millions 
in 1902. Exports of agricultural products grew from 570 million 
dollars in 1896 to 873 millions in 1903, and exports of manufac- 
tures from 228 millions in 1896 to 407 millions in 1903, while 
manufacturers' raw materials, which formed but 26% per cent of 
the imports in 1896, formed 38 per cent in 1903. As a result of all 
these things came increased wages, increased employment, and 
increased savings by the workingmen, as is shown by the fact that 
the money deposited in the savings banks increased from 1,907 
million dollars in 1896 to 2,935 millions in 1903, and the number of 
depositors from 5,005,000 in 1896 to 7,305,000 in 1903. Railroads 
passed out of the hands of receivers ; railroad building has re- 
sumed, the mileage of railroads increasing from 182,776 in 1896 to 
205,000 in 1903, and the number of tons of freight carried by the 
railroads increasing from 773 millions in 1890 to 1,192 millions in 
1902. With this great activity and prosperity has come an increase 
in national wealth from 77 billions of dollars in 1895 to 100 billions 
at the present time, placing the United States at the head of the 
list of the world's nations, and with a national wealth actually 50 
per cent, greater than that of the United Kingdom, and as great 
as that of France and Germany combined. 

As to Further Tariff Revision. 

Much has been said during the past year as to the importance 
of a revision of the present tariff. To this it is only necessary 
to say in reply, that the Republican party has adjusted, revised, 
increased, or reduced the tariff whenever such adjustment, in- 
crease, or decrease seemed necessary during all of the 40 years 
since it assumed government in 1861. In that period of 40 years 
there have been more than 20 different tariff changes. A consid- 
erable number of these have been changes of a broad, general 
character, many of them increases or decreases all along the line, 
while others were of less importance and relating to certain 
classes of merchandise only, but any of them sufficient to show 
the willingness of the Republican party at any period of its con- 
trol to make any necessary changes, revisions, or reductions 
which in view of new conditions may be demanded by public 
opinion. No body of men is more sensitive to public opinion or 
public demand than a Congress formed in the manner in which 
that of the United States, is chosen and whose members are di- 
rectly dependent upon popular approval for a continuation of 
their services. No body of men is more accessible to the public 
than a body to which each citizen of the United States is guar 
anteed by the Constitution the right of petition. An examination 



THE TARTFF. 13 

of the history of our tariff legislation shows that while the pro- 
tective tariff was adopted early in 1861, changes in rates of duty 
were made in 1862, 1863, 1864, 1865, 1866, 1867, 1869, 1870, 1872, 
1875, 1879, 1880, 1882, 1883, 1890, 1894, and in 1897, and that all of 
these as well as many minor changes were, except that of 1894, 
made by the Republican party, by Republican votes in Congress, 
and approved by a Republican President In many of these 
changes there was a marked reduction in rates of duty. Indeed, 
there has never been a time during the 40 years of Republican 
control that a Republican Congress did not respond to a popular 
demand for tariff changes, whether of advance or reduction. 
With this record it seems not unreasonable to assume that any 
changes in the tariff justified by conditions will be not only de- 
manded of Congress by the people through their usual channels 
of approach, but that the changes thus demanded will be prompt- 
ly made as they have always been during the record of the Re- 
publican party. A history of tariffs changes from 1789 to 1897 is 
given on page 56. 

Relative Growth in Coal Consumption In the Leading Protected 
and Free-Trade Countries. 

Another measure of the relative business and manufacturing 
activity in the low-tariff and protected countries is found in the 
coal consumption of the two classes of countries. The United 
Kingdom, Germany, and the United States are the great coal- 
producing and the great manufacturing countries, and the United 
Kingdom is a marked example of free trade and the United States 
and Germany are marked examples of protection. Usually at- 
tempts to measure coal consumption have been based on the 
mere figures of production, but these are misleading because of 
the fact that) the United Kingdom exports such large quantities 
of coal. A table presented on page 61 shows the quantity 
of coal consumed in each of these countries, as well as 
the quantity produced and the increase in consumption since 
1875. This table will justify a very careful study. It shows that 
the coal consumption of the United Kingdom has increased less 
than 50 per cent since 1875, that of Germany has increased about 
200 per cent and that of the United States nearly 500 per cent. 
These figures have been very carefully compiled from official in- 
formation and their accuracy cannot be doubted. 

Trusts and the Tariff. 

The Democratic assertion that the tariff is responsible for the 
existence of trusts and that it should be removed for the pur- 
pose of destroying those organizations seems scarcely justified 
either in fact or theory. It does not seem to be a fact that the 
tariff is responsible for the existence of trusts, nor does the 
theory of repeal of the tariff for the purpose of destroying them 
seem to be justified in view of the adverse effect upon industries 
in general which would follow. No one familiar with the history 
of trusts and great combinations in other parts of the world can 
for a moment accept as accurate the assertion that the tariff is 
responsible for the existence of organizations of this general 
character, whether under the title of trusts or-, otherwise. Mr. 
Blaine, in 1888, on returning from a visit to Europe, declared in 
his speech opening the Presidential campaign of that year that 
trusts and combinations to control prices even at that early date 
existed in free-trade England in large numbers ; or, as Senator 
Dolliver has recently expressed it, "England was even then 
plastered all over with trusts." In October, 1895, a steel-rail 
trust which embraced the steel-rail manufacturers of Great 
Britain was organized, and on February 5, 1896, the London Iron- 
monger announced the details of its agreement, the chief among 
them being that "there is to be no under selling." In 1895 the 
Sheffield Telegraph published the draft of a. scheme proposing 
the combination of 200 iron firms in the various cities of England 
for the purpose of regulating the prices of all classes of iron. In 
1897 the details of the combination between the great armament 
manufacturing firms were announced. Some of the great combi- 
nations in England for the control of prices of articles 
in common use were organized as early as 1890, among 
them the following: The Salt Union, Limited, with a 
capital of $10,000,000; in the same year, the Alkali Com- 



11 THE TARIFF. -^. 

pany, combining 43 manufacturing establishments, with a 
capital of #30,000,000; the J. & P. Coates Company, 
thread manufacturers, in 1896, a combination of four busi- 
nesses with a capital of $27,000,000; another cotton thread organi- 
zation, i v»ar later, combining 15 manufacturing establishments 
with a capital of $14,000,000; a combination of cotton spinners in 
1898, combining 31 establishments with a capital of $30,000,000; 
in the same year a combination o{ the dyeing interests, 
combining 22 establishments with a capital of $22,000,000; also 
in the same year a combination of the Yorkshire Wool Combers, 
combining 38 establishments with a. capital of $12,000,000; also 
in 1808 a combination of 00 calico printing establishments with 
a capital of $46,000,000; in 1900 a combination of 28 wall paper 
manufacturers with a capital of $21,000,000, and in the same 
year a combination of 40 establishments of cotton and wool dye- 
ing establishments with a capital of $15,000,000. In the decade 
1890-1900 the public announcements of combinations in free- 
trade England included 328 different business concerns amalga- 
mated into 15 great organizations with a total capital of $230,- 
000,000, while a very large number of minor organizations and 
those which were not made public should be added to the list 
to render it complete. Many great combinations have been or- 
ganized in free-trade England since 1900, but this history of the 
decade in which great combinations of capital of this character 
have been common in all parts of the world where manufactur- 
ing capital is plentiful is sufficient to show that such combina- 
tions and organizations are not confined to protection countries, 
but on the contrary flourish with equal vigor in the one free- 
trade country of the world in w T hich a sufficient amount of capital 
exists to justify the organization of combinations of this kind. 

ENGLISH ATTITUDE TOWARD TRUSTS. 

The United States Industrial Commission made a thorough 
investigation of trusts and trust operations in foreign countries 
as well as in the United States in 1900, sending an expert (Prof. 
J. W. Jenks, of Cornell University) to the principal European 
countries and giving the subject much careful attention and 
study. The report stated that "there is a strong tendency toward 
the formation of industrial combinations everywhere in Europe," 
and of the situation in England says: "There were in earlier 
days very many local combinations to keep up prices, and in 
some cases these rings have proved very successful. Within the 
last three years a very active movement toward the concentration 
of industry into large single corporations, quite after the form 
that has been common in the United States, may be observed. 
Nearly all the feeling that one notes in England on this subject 
has reference to the later corporations formed by the buying up 
of many different establishments in the same line of business — 
corporations that through combination have succeeded in ac- 
quiring in many particulars a good degree of monopolistic con- 
trol. * * * Industrial combinations in Europe do not seem to 
have awakened the hostility in any country that is met with in 
the United States. In England one finds in the papers a little 
expression of fear of the newer large corporations. The Govern- 
ment has taken no action whatever regarding them further than 
to pass, August 8, 1900, an amendment to the Companies Act. 
which provides for greater publicity regarding the promotion and 
the annual business of corporation® than before. * * * There 
is, relatively speaking, little objection to combinations in Europe, 
and in some cases the governments and people seem to believe 
that they are needed to meet modern industrial conditions. They 
do believe that they should be carefully supervised by the Gov- 
ernment and, if necessary, controlled. * * * The great degree 
of publicity in the organization of corporations has largely pre- 
vented these evils arising from stock watering, and has evidently 
had much effect in keeping prices steady and reasonable and in 
keeping wages steady and just There seems to be no inclination 
toward the passage of laws that shall attempt to kill the combi- 
nations. This is believed to be impossible and unwise. Laws 
should attempt only to control, and that, apparently, chiefly 
through publicity, though the governments may be given re- 
strictive power in exceptional cases." 



THE TASOfV. 15 

TRUSTS AND PRICES. 

Combinations of the general character looseiy designated as 
"trusts" are in fact the grouping together under one manage- 
ment of several industrial concerns making articles similar in 
character, primarily for the purpose of reducing expenses of pro- 
duction and sale, and also of securing uniformity in prices of 
the products of the organizations thus grouped. Unless the or- 
ganizations so combining include all or at least a large share of 
those existing in the country in question, it is obviously impossi- 
ble for them to control prices in that country. They may de- 
termine the price at which their own product shall be sold, and 
insist upon receiving that price or refusing to sell, but they can 
not control the prices at which others shall sell in competition 
with them unless the original organization is sufficiently strong 
to buy in all competitors or to drive them ou". of existence by 
selling at prices below the cost of production. 

It will be conceded that unless a combination of manufac 
turers of a given article thus controls the price of a very large 
proportion of that article produced in the country of operation 
it can not exact excessive prices because of the competition 
which would be offered by other producers not within that or- 
ganization. Let us see what the relation is of the great manu- 
facturing combinations in the United States to the total manu- 
facturing capacity in the line of industry in which they operate. 
The most marked example of organizations of this kind is, of 
course, the United States Steel Corporation. Mr. James M. 
Swank, who has been secretary of the American Iron and Steel 
Association since long before the trust era, and editor of the 
Bulletin of the Iron and Steel Association, in a table recently 
published compares the product of the United States Steel Cor- 
poration in 1902 with the product of all other iron and steel 
manufacturing companies in the United States. These statistics have 
been gathered with great care ; those of production by the Steel 
Corporation, from its own official statements, and those of other 
companies from authentic sources. They show that in 1902 the 
United States Steel Corporation produced 50.8 per cent of the 
finished rolled iron and Lteel products manufactured in the 
United States. The total of all finished rolled products by the 
United States Steel Corporation in 1902 was 7,086,658 gross tons, 
and by the independent companies, 6,857,458 gross tons. It is 
obvious that a company producing only one-half of any 
given article entering a given market could not maintain exces- 
sively high prices against the competition which would be of- 
fered by a large number of unorganized individuals whose total 
product is equal to that of the company attempting to maintain 
such excessive prices, and each seeking to find a market for its 
product and willing to sell it at a fair profit, thus insuring con- 
stant work for its millc and workmen. It is quite apparent, 
therefore, that the competition thus offered by uncombined 
manufacturers operating in their individual capacity, whose ag- 
gregate production is equal to that of the corporation, must ren- 
der impossible the control of the market by that corporation and 
compel it either to sell its product at a reasonable price or ex- 
clude them from the market. For above-mentioned table see index. 

TRUSTS UTTERLY UNABLE TO CONTROL THE MARKETS. 

This condition of the impossibility of a control of the mar- 
kets by combinations of this character applies with even greater 
force when we take into consideration the relation of the indus- 
trial combinations of the country as a whole to the manufactur- 
ing industries of the country as a whole. The census of 1900 
made an examination into this question and the share which in- 
dustrial combinations produced in that year of the total manu- 
factures of the country as a whole. Under the term "industrial 
combinations" it included all those organizations which consisted 
of "a number of formerly independent mills which had~been 
brought together into one company under a charter obtained for 
that purpose." This is distinctively the "trust" or "combination" 
idea— the grouping together under one management a number of 
establishments manufacturing similar articles with the purpose 
of reducing cost of production and sale and of securing uniform- 
ity in prices of their product The result of that inquiry, found 



16 THE TAKIM . 

on page lxxi, table xxvi, of part one of the Census Eepcrt on 
Manufactures, 1900, showed that all of the manufacturing es- 
tablishments of the United States which could be included under 
this designation produced only 14.1 per cent of the aggregate 
factory product of the United States in that year, and employed 
but 8.4 per cent of the factory labor of the country. Here, then, 
is a fair indication of the power of the industrial combination, 
whether under the term trust or otherwise, to control prices of 
manufactures in the United States. They produced in the year 
1900, the latest year in which accurate statistics are available, 
but 14.1 per cent of the total manufactures of the country, 
while 85.9 per cent of the manufactures of the country were 
produced by men and manufacturing 1 establishments not in- 
cluded in or a part of these industrial combinations. Can any- 
body suppose for a moment that the producers of only 14. per 
cent of a given article or class of articles would have the power 
to fix prices and maintain them at an excessive or exorbitant 
figure against the competition which would be offered by the 
producers of the other 86 per cent? Not only is it true that 
the industrial combinations were in this great minority as to 
power of production but it is also true that in many cases these 
very organizations were competitors among themselves. It fre- 
quently happens that one trust, so called, or combination is a 
competitor of another trust or combination making the same 
article, so that in fact the competition was not merely that of 
86 per cent of unorganized industry against 14 per cent of or- 
ganized, but there was also competition between various sec- 
tions of the 14 per cent included under the general group of 
industrial combinations. While it is true that there has been a 
large increase in the number and capitalization of trusts since 
1900, the developments of the past year have shown that these 
apparently rapid developments in the trust creation and control 
were largely fictitious, and that many of them have not even the 
power to continue their own existence, to say nothing of the 
power to control prices. 

FREE TBADE PROVING DESTRUCTIVE IN ENGLAND. 

Even if we assume that all of the industrial combinations, 
manufacturing 14 per cent of the total manufactures of the 
country, were cooperating among themselves to maintain and 
demand high prices, this fact would not justify the destruction 
of the other 86 per cent of the manufacturing industries of the 
country as a result of the punishment which the friends of 
free trade would deal out to the corporations producing this 14 
per cent of the manufactures of the country. That free trade 
would immediately injure and ultimately destroy the great man- 
ufacturing interests of the country is illustratetd by the cries 
now coming from free-trade England that her manufacturing 
industry, which was established under protection before that 
of the United States began its great development, is now being 
destroyed by the competition made possible through open doors- 
free trade. The proposition to bring about the punishment of 
industrial combinations which are alleged to be maintaining 
excessively high prices, by the wholesale destruction which 
would result from free trade in their products, is like a propo- 
sition to burn the barn to destroy the rats. Regulation, to pre- 
vent a control of the markets and the establishment of exces- 
sively high prices, is the logical and proper remedy rather than 
destruction of the great interests directly involved and the far 
greater interests of manufacturers not in those combinations, 
who would equally suffer. 

JUDGE GROSSCUP ON TRUSTS. 

On this subject Judge Peter S. Grosscup, whose vigorous 
expressions in hostility to combinations which seek to control 
prices have attracted universal attention both in this country 
and elsewhere, said in an address at Des Moines, Iowa, on April 
27, 1904: "To the great corporations we now go for almost 
every help in life. The farmer turns up the soil with a cor- 
poration-made plow; the rains may mellow the soil, but a cor- 
poration drill puts in the seed. The gathered harvest is stored 
in corporation warehouses, transported over an incorporated 



THE TAEIFF. 17 

railway, ground into flour by incorporated rollers, and baked in- 
to bread in corporation ovens. And tbey whose mouths feed upon 
the loaves pay for them, for the most part, out of earnings re- 
ceived from a corporation treasury. As an ally to the farmer 
corporation enterprise helps to feed us. As an ally to the manu- 
facturer it helps to clothe us. As an ally to the moral agencies 
of mankind it helps us through the pathway of advancement. 
Without corporate enterprise this great State would be a hermit 
in a wilderness of unsettled prairie lands. The great corpora- 
tion is here to stay. The problem before us is not how to' de- 
stroy the corporation nor how to hamper it or trip it up, but to 
make it a helpful servant to the uses of mankind. * * * The 
first step to this end and the great step is to nationalize the 
corporation. Five and forty masters now ordain its policies. It 
should be governed by one master and one policy. The corpor- 
ation is no longer the sole concern of the State where its books 
happen to be kept or its directors meet, it has become the con- 
cern of the whole country over which its enterprises reach. The 
day of the New Jersey policy is gone, and the New York policy 
and the Iowa policy — the day has come for an American cor- 
porate policy." 

PRESIDENT ROOSEVELT'S OPINION. 

On this same subject of regulation as against the Demo- 
cratic doctrine of destruction of the trusts, President Roosevelt 
said at Milwaukee, on April 3, 1903: "I think I speak for the 
great majority of the American people when I say that we are 
not in the least against wealth as such, Avhether individual or 
corporate; that we merely desire to see any abuse of corporate 
or combined wealth corrected and remedied; that we do not 
desire the abolition or destruction of big corporations, but, on 
the contrary, recognize them as being in many cases efficient 
economic instruments, the results of an inevitable process of 
economic evolution, and only desire to see them regulated and 
controlled so far as may be necessary to subserve the public 
good. We should be false to the historic principles of our Govern- 
ment if we discriminated, by legislation or administration, for or 
against a man because of either his wealth or his poverty. There 
is no proper place in our society either for the rich man who uses 
the power conferred by his riches to enable him to oppress and 
wrong his neighbors, nor yet for the demagogic agitator who, 
instead of attacking abuses, as all abuses should be attacked wher- 
ever found, attacks men of wealth, as such, whether they be good 
or bad, attacks corporations whether they do well or ill, and 
seeks, in a spirit of ignorant rancor, to overthrow the very founda- 
tions upon which rest our national well-being." 

Speaking upon this subject in 1902, President Roosevelt said : 
"The necessary supervision and control, in which I firmly believe 
as the only method of eliminating the real evils of the trusts, must 
come through wisely and cautiously framed legislation, which 
shall aim in the first place to give definite control to some sover- 
eign over the great corporations, and wiich shall be followed, 
when once this power has been conferred, by a system giving to 
the Government the full knowledge, which is the essential for 
satisfactory action. Then, when this knowledge — one of the 
essential features of which is publicity — has been gained, what 
further steps of any kind are necessary can be taken with the con- 
fidence born of the possession of power to deal with the subject, 
and of a thorough knowledge of what should and can be done in 
the matter. We need additional power, and we need knowledge. 
* * * Such legislation — whether obtainable now or obtainable 
only after a constitutional amendment — should provide for a rea- 
sonable supervision, the most prominent feature of which at first 
should be publicity; that is, making public, both to the Govern- 
ment authorities and to the people at large, the essential facts in 
which the public is concerned." 

Such laws as those suggested by Judge Grosscup and recom- 
mended by President Roosevelt would not only prevent the fixing 
and maintenance of excessive prices, but would prevent such ex- 
periences as those of the past year in which the public were in- 
duced to make large investments in overcapitalized trusts upon 
the assumption that all trusts were great money makers ; and had 



18 THE TABIFF. 

such regulations been in existence during the past two, years they 
would have saved to the public hundreds of millions' of dollars 
invested in stocks of corporations whose shrinkage in value, as es- 
timated by the Wall Street Journal, October 26, 1003, amounted 
at that time to $1,753,050,700. 

Sales Abroad at Figure* Belovr Home Prices. 

It is doubtless true that occasional wles of American manu- 
factures are made abroad at less than the established and regular 
prices at home, just as the manufacturer »r merchant frequently 
sells below his regular prices in the home market, for the sake of 
gaining new customers or of disposing of his surplus products at 
cost, rather than close down his factories and deprive his work- 
men of employment. A very careful estimate of the value of 
American manufactures exported at less than the current prices 
charged in the home market was made by the Industrial Com- 
mission, an official body of the United States Government, com- 
posed of members of both parties, having power to call before 
it witnesses, to administer oaths, to take testimony, and to punish 
witnesses for refusal to answer such questions as it might choose 
to put to them. That inquiry extended over a long period of time, 
and was very far-reaching. Inquiries were sent to a large number 
of manufacturing establishments in all parts of the country and 
the replies received came from manufacturers of all classes, includ- 
ing iron and steel, machinery and metal products, typewriters, 
engines, agricultural implements, vehicles, leather and its manu- 
factures, boots and snoes, manufactures of wood, paper and pulp, 
textiles and manufactures therefrom, flour, provisions, canned 
goods, condensed milk, chemicals and drugs, optical goods, manu- 
factures of glass, clay and stone products, and numerous other 
classes of products. Much attention was given to an examination 
and discussion of the replies, which were received from hundreds 
of manufacturers in every part of the country, and the Commis- 
sion, discussing these replies, says: "A great majority of the 
answers indicate that prices are no lower abroad than they are 
for domestic consumers, and a considerable number indicate that 
foreign prices are higher." This would indicate that but a small 
percentage of the 400 million dollars' worth of manufactures ex- 
ported annually is sold at less than domestic prices, and when it 
is remembered that the gross value of the manufactures of the 
country in 1000 was 13 billions of dollars it will be seen that the 
share of that product sold in foreign markets at prices less than 
those charged at home must be extremely small. 

It is urged by the Democratic free traders that because of 
these sales abroad at prices less than those charged in the home 
market the tariff on the class of articles so sold abroad should 
be removed. As these sales are liable to occur in any class of 
manufactures under the conditions above suggested this remedy 
would mean the removal of the duty on al] classes of manufac- 
tures. Would it be worth while to destroy our home manufactur- 
ing industry, which employes 5% million wage-earners and pays to 
them nearly 3 billion dollars per annum for their services, just 
because the manufacturers choose to sacrifice their profits on 
a very small percentage of the value of their products for 
the sake of keeping labor employed and of increasing their em- 
ployment of labor through the added markets which they expect 
to obtain by such sales? 

A PRACTICE PREVAILING IN ALL COUNTRIES. 

While the statements obtained by the Industrial Commission 
indicate that but a small percentage of the manufactures exported 
are sold at less than domestic prices, other testimony obtained 
by that Commission, and statements obtained from other sources, 
show that the custom of selling merchandise abroad at less than 
home prices is one which exists and always has existed in free- 
trade England as well as in all other countries attempting to culti- 
vate markets abroad. Mr. C. R. Flint, of the great exporting firm 
of Flint, Eddy & Co., of New York, in his testimony before the 
Commission said : 

"There are times when there is a surplus, when manufacturers 
will seek a foreign market at a concession. This is true in all 
manufacturing countries. It does not apply especially in the 
United States, but it is true in all countries. It is true in England. 
where there is free trade." 



THE TAMFF. 19 

Being asked if there was any difference in that particular be- 
tween trust-made goods and goods made independently of trusts, 
he replied that : 

"There was far more of !L disposition to make concessions be- 
fore these combinations, from the fact that individual manufac- 
turers were under more pressure of necessity to realize on their 
investments. The great industrial combinations, by reason of the 
great advantage they have in regulating production, avoid exces- 
sive production, and therefore are less likely to be under financial 
pressure." * % 

' Mr. John Pitcairn, president of the Pittsburg Plate Glass Co., 
in his testimony before the Commission, said of plate glass ex- 
portations : 

"Various manufacturing powers in Europe have combined into 
one strong international syndicate in order to regulate and divide 
among themselves the world's markets. Only the United States is 
left out of this protecting combination. This market (the United 
States) is therefore a desirable dumping ground for the surplus 
of European production, and exceptionally low prices are being 
made by the foreign manufacturers for glass intended for the 
United States* For example, the present European price for pol- 
ished plate glass cut to size is, for the United States 40 and 50 
per cent discount from a certain price list; for England, 10 per 
cent discount from the same price list, which means a difference 
in price of 58 per cent. European discounts for stock sizes of pol- 
ished-plate glass are, for the United States, 30 per cent off the 
list; for England, 5 per cent off the same lists, which shows a 
difference of 36 per cent." 

On this subject, Prof. W. J. Ashley, former professor of eco- 
nomic history in Harvard University, and now professor of com- 
merce in the University of Birmingham, England, in a work en- 
titled "The Tariff Problem," issued in London in 1904, says : 

"This dumping of which we have heard so much is nothing 
new. It is the ordinary outcome of mercantile ethics — the ethics 
of industrial war. The policy of selling abroad for a time cheaper 
than at home was naturally resorted to, when it seemed expedient 
by English manufacturers in earlier decades, just as it was 
later by German manufacturers to secure sale in Russia. In- 
deed, a German economist, writing in 1897, before we in England 
had begun to complain of being dumped upon ourselves, expressly 
designates the policy of low foreign prices as 'the German-Eng- 
lish system.' * * * It has long been realized by economists 
that in times of depressed trade, when the market is glutted, it is 
often expedient to sell goods abroad at 'slaughter prices.' It may 
be well to dispose of them abroad at any price which will get rid 
of them, in order to prevent their continuing to press on the home 
market. * * * From an economic and from a business point of 
view there is no unfairness in the matter. Exceedingly low prices 
are made for a certain time and for certain markets simply be- 
cause this is expected to inure to the best financial result over the 
whole range of transactions or over a period of years. And it is 
necessity that drives, in most cases, and not the free will of the 
exporter. * * * The abolition of the protective tariff on the 
too-cheaply exported goods is an improbable result. The com- 
binations which are complained of can reply with much reason 
that their export policy is for the good of the country as a whole. 
The subject was thoroughly discussed in the German Reichstag in 
November last; and Dr. Moller, the Prussian Minister of Commerce, 
summed up the prevalent opinion in official circles. He could not 
but rejoice to see that the exportation of great quantities of iron, 
etc., to the United States and to England had alleviated the crisis 
in Germany. True, this would not suffice to put the whole of the 
German production into a healthy condition; but if this outlet had 
not been found, the burden of over-production would have weighed 
upon the country for years. The motion that the import duties 
should be lowered on goods produced by syndicates and sold more 
cheaply to foreigners was thereupon defeated by 166 votes to 68." 

SECRETARY SHAW'S VIEW. 

As bearing upon this subject, the following quotation »from a 
speech delivered by Hon. Leslie M. Shaw, Secretary of the Treas- 
ury, at the Auditorium Opera House during the session of the 
Republican National Convention, is submitted : 

"Our opponents lay much stress upon the fact that some 
American manufactures are sold abroad cheaper than at home. 
Our friends sometimes deny this, and they sometimes apologize 
for it, and a few, in times past, have joined our opponents in 
recommending a removal of the tariff from all such articles. It is 
useless to deny, and, in my judgment, unwise to apologize and 
little short of foolishness to attempt to remedy the assumed evil 
in the manner proposed by the opposition. 

"A nonpartisan commission appointed by Congress to investi- 
gate the subject, with authority to compel the attendance of wit- 
nesses, made a careful and detailed report. Basing his computa- 
tions upon the facts set forth in that report, Senator Gallinger, of 
New Hampshire, in a speech made in the United States Senate on 



20 THE TABIFF. 

April 23rd, last, placed the value of exports sold at a lower price 
abroad than at home at $4,000,000. I cannot find that the sub- 
stantial correctness of this estimate was ever questioned l>v the 
"['position. But in any event the amount is so small as compared 
with the aggregate output of our factories as to be unworthy of 
consideration. The report of the Industrial Commission shows 
that some of these articles are protected in this country by pat- 
ents, and are not so protected in the foreign market. If the sup- 
posed evil as applied to patented articles is worthy of dr 
remedial measures, the most feasible would be the repeal of our 
patent laws. w 

"There is one other important feature not often recognized. 
The Republican party has always provided a method whereby a 
manufacturer can have the benefit of free raw material for the 
production of merchandise actually exported. Under regulations 
prepared by the Secretary of the Treasury, the consumer of im- 
ported material is allowed to recover back the duty paid thereon 
whenever he exports the same or any article manufactured there- 
from. During the fiscal year 1903, the amount of drawbacks thus 
actually paid exceeded $5,000,000. A portion of this was upon goods 
exported direct from warehouses and upon which no labor had 
been expended. But if Senator Gallinger's estimate, based upon 
the data furnished by the Industrial Commission, be correct, that 
only $4,000,000 worth of merchandise is annually sold abroad 
cheaper than at home, then the annual drawback onVmported ma- 
terial would seem to remove any presumption that an injustice is 
being perpetrated upon the American consumer. A very small 
portion of the $5,000,000 drawback would cover the difference be- 
tween the price at which this merchandise is sold abroad, and the 
domestic price. 

"The United States Census reports our aggregate manufactures 
of 1900 at $13,000,000,000. It is doubtless somewhat larger now. 
$4,000,000, the amount estimated to be sold abroad cheaper than at 
home, is therefore only one-thirtieth of one per cent of the aggre- 
gate. In other words out of every one thousand dollars' worth 
of manufactures produced by American labor, something like 
thirty cents' worth is sold abroad cheaper than to our own people; 
or, stated in yet another form, every time our shops and factories 
pay five hundred dollars to labor, and therewith produce one thou- 
sand dollars' worth of goods, they sell thirty cents' worth abroad 
for twenty-nine cents. 

"Whether this practice is defensible or not, foreign producers 
very generally and almost universally do the same thing. Nearly 
every class of goods imported into this country is obtainable for 
export to this country below the regular foreign market. And this 
is as true in free trade England as in protection France or Ger- 
many. Our tariff law provides that imported merchandise shall 
be appraised at its regular market value at the place whence it is 
imported and at the time of importation, and a penalty is provided 
for undervaluation. To avoid this penalty the importer adds to 
the invoice what he admits to be the difference between the regu- 
lar foreign market value and the price actually paid. During the 
eleven months of the present fiscal year over 6,000 invoices entered 
at the one port of New York have been thus advanced by the im- 
porter to make market value, and the aggregate of the advance- 
ments thus made upon these invoices exceeds $1,200,000. During 
the fiscal year 1903, $32,000,000 worth of merchandise was imported 
at New York admittedly below the foreign market value, and the 
importer voluntar-ily added $1,500,000 to the invoice to make mar- 
ket value as the confessed difference between the price actually 
paid and the regular foreign market value; and Treasury officials 
added thereto an additional $400,000 and imposed and collected a 
penalty of $400,000. The goods thus sold by the foreign producer 
cheaper for exportation to the United States than for home con- 
sumption include woolen goods, cotton goods, silk goods, and linen 
goods of all kinds; umbrellas, ribbons, trimmings, velvets, hosiery, 
rugs, furs, cutlery, glassware, jewelry, furniture, saddlery, guns, 
wool, hides, chemicals, machinery, iron and steel products gener- 
ally, and groceries. In fact, they include about everything and 
from all countries. 

"So universal is the practice of selling goods for export to the 
United States cheaper than for domestic consumption that a very 
large and influential association of importers have sought for 
years to have our tariff laws amended so as to authorize the as- 
sessment of ad valorem duties on the foreign market value for ex- 
portation to the United States instead of as now upon the regular 
foreign* value at the place whence the goods are imported. This 
association of importers thus recognize and confess the fact that 
there are two foreign market values of merchandise, one the mar- 
ket value for domestic consumption and the other the market value 
for export to the United States. They also recognize and confess 
that a change of. the law permitting the assessment of ad valorem 
duties on the market value for export to the United States would 
be as advantageous to them as a reduction in the rate of duty. 

"It is a well known fact that sugar which sells in the United 
States, duty paid, at five cents per pound retail, is worth in the 
country of production, seven and one-half cents per pound whole- 
sale. The very men who grow the beets from which this sugar 
is made, pay ten cents per pound retail for the same sugar which 
we get at five cents per pound, and the foreign beet grower is 
statesman enough to approve the policy. He is willing to pay a 
higher price for the small amount of sugar which he consumes, 
on condition that the product of his field shall supply the American 
table. Speaking for myself alone, I am willing to pay any reasonable 
price for the small amount of barbed wire which I consume, pro- 



THE TARIFF. 21 

vided the wheat from my field, the dairy products from my herd, 
and the meat from my stall, shall feed the men who mine the coal 
and iron, and the artisans who produce the wire to fence the 
farms of other countries." 

Exports from England at Less Than Domestic Prices. 

That the manufacturers and exporters of free-trade England 
sell their goods in foreign countries at less than the prices 
charged in the home market is shown by the following extracts 
from official reports to the Department of State of a United 
States Consul in England. The correspondence in question oc- 
curred in 1890 and 1891, and while not intended as a discussion 
of thei question of exports at less than domestic prices, tells in- 
cidentally some important facts bearing upon certain questions 
now at issue. The statements, which are those of the United 
States Consul at Birmingham, England, show habitual and con- 
tinuous exports to the United States at . less than the prices 
charged for the same article in the domestic markets of England. 
This is important in its bearing upon the claim that exports at 
less than domestic prices are made possible through the exist- 
ence of a protective tariff, and also in its relation to the claim 
which has always been made by protectionists that at least a 
part of the protective tariff duty is paid by the foreign manufac- 
turer or exporter to the country in question. 

The statements which follow are extracts from a series of 
reports in 1890 and 1891 to the State Department by Hon. John 
Jarrett, consul of the United States at Birmingham, England. 
These reports are the results of some investigations made by Mr. 
Jarrett with the purpose of determining whether the statements 
made to him as to the prices at which certain goods were being 
exported to the United States were or were not accurate and had 
as their purpose the determination of the question as to whether 
the goods were being undervalued. This fact will account for 
the fragmentary character of the statements, since they were 
made in a discussion of a subject different from that now under 
consideration. The facts developed, however, that the goods 
were being sold at less than the prices charged in the home mar- 
kept, are pertinent to the present issue. 

In a communication to the State Department dated April 15, 
1891, Mr. Jarrett says: 

"It is extremely difficult to get at the actual selling- prices of 
cycles, as there are no wholesale price lists in general use, nor 
are there any market quotations or prices current to be found in 
use in or by the trade. The retail price lists are in general use. 
and prices are made according to quantities sold, and the standing 
of the buyers, by discounts on the retail price. These discounts 
range in the foreign trade from 30 to 60 per cent, and in the home 
trade from 20 to 40 per cent. To very large customers, especially 
American customers, the manufacturers furnish special prices. 
* * * I desire also again to call your attention to the difference 
in discounts allowed in the home and foreign trade. In a dispatch 
of September 19, 1890, I enclosed you a letter from Singer & Com- 
pany which clearly stated that the higher discounts allowed in the 
foreign trade were made necessary hy the tariffs of foreign coun- 
tries. I was informed up to the date of that dispatch that the 
discount allowed in the American trade was the same as that to 
the trade of all foreign countries, and now discover that in cycles 
there is a higher discount of ten per cent allowed in the United 
States trade than that of other countries, AND THAT THTS IS BE- 
CAUSE OUR TARIFF ON CYCLES IS HIGHER THAN THAT OF 
OTHER COUNTRIES." 

In a communication to the State Department dated September 
16, 1890, Mr. Jarrett also says: 

"I desire briefly to call your attention to another singular 
fact. The prices charged in the export trade, are, as a rule, in 
nearly all trades,' less than the prices charged in the domestic 
trade. I enclose you a letter I have received from Singer & Com- 
pany, of Coventry, which, you will observe, is marked 'confiden- 
tial.' It is altogether impossible to get reliable information of 
this character in any other way. Singer & Co. are large manufac- 
turers' of cycles, etc., and have a house in Boston to which they 
make consignments of their manufactures. I have letters from 
other cycle manufacturers who also cite the fact that their dis- 
counts in the foreign trade are higher than those in the domestic 
trade." 

The letters referred to by Mr. Jarrett in which the manu- 
facturing company states that its export rates are less than those 
charged in the domestic market are as follows: 



22 ' Hi I AMI I . 

i ( 'oiiii.lrntial.) 

CONTRACJTORS TO THE BRITISH GOVERNMENT. 
SINGER & CO 

Cycle Manufacturers. 

London 17 Holborn Viaduct. 

August 16, 1890. 
Dear Sir: In reply to your Inquiry of the 13th Inst., we beg to 
say that we do not now is'sue any trade list, but we charge our 
agents special account prices which vary according to the number 
of machines purchased. These prices represent discounts varying 
from 25 per cent to 45 per cent, the latter being export discount 
only. Export discounts are larger than those we allow at home, 
as in nearly every country In Europe there is a considerable duty 
on cycles' and we have to help our agents in this way. 

We believe our Mr. Stringer explained this to you personally 
on his last visit to the consulate. 
Yours' faithfully, 

SINGER & CO. 
JOHN JARRETT, ESQ.., 

United State Consulate, 

Birmingham." 
"(Memorandum from Starley Brothers, Coventry.) 

[ENCLOSURE 3.] 
JOHN JARRETT, ESQ., 

United States Consul, 

Birmingham. 

March 20th, 1891. 
Dear Sir: We have much pleasure in enclosing two copies of 
our price list as requested by your letter of the 18th inst. The 
lists are printed for distribution by our agents and others, among 
private individuals, and are subject to discounts ranging from 60 
per cent downwards, but to large buyers our prices are, quoted net 
and are the subject, of special arrangement. We would direct 
your attention to the fact that these lists' are prepared for the 
English trade. Our American trade is done through one firm only, 
and as a considerable portion of our whole trade is done through 
this Arm, and the machines are different from the English ma- 
chines, our prices are low and the subject of a special arrangement 
every year. 

Yours faithfully, • STARLEY BROTHERS, 

fr. C. Bradham." 

DEMOCRATIC PRESS ADMITS MATTER UNIMPORTANT. 

The New York Evening Post, in its issue of July 21, 1904, dis- 
cussing the English proposition to protect the home manufacturer 
against "dumping" by a protective tariff, says editorially: 

In earlier days it went by the fairer name of "inundation," or the 
"threatened flooding" of the markets of a new country by the un- 
scrupulous producers of the Old World. Defined with precision, 
it means' simply the sale of goods in a foreign market either at an 
absolute loss, or at a markedly lower figure than is obtained in the 
home market of the dumping manufacturer. Now this so-called 
dumping process may take two forms. It may be done at an in- 
itial loss, in order to advertise wares, or possibly to drive out small 
competitors; or it may be practiced in order to clear the home mar- 
ket of a surplus and thus maintain monopoly prices in the home 
market. It is not necessary to go abroad to find the first kind of 
dumping. Every grocer who sells sugar below cost, in order to 
make custom for his other wares, is a dumper. Where this prac- 
tice in England is resorted to once by a foreign producer, it is 
practiced by Englishman against Englishman a hundred times. 
Moreover, it involves a certain initial loss', and a doubtful future 
gain. No tariff can protect against it, nor has the success of this 
kind of underbidding proved so frequent as to warrant any attempt 
to prohibit it by law, even if such an attempt were likely to suc- 
ceed. 

The New York Journal of Commerce, Democratic, a leading 
financial and commercial publication, discussing the same subject, 
says in its issue of July 22, 1904: 

"However it may be in Germany, there is not here any organ- 
ized system" for regulating that trade and "dumping" a surplus 
"irrespective of cost." This "dumping" is the chief bugbear of 
the British tariff reformers, but it cannot be carried on on any 
considerable scale or for any length of time to the advantage of 
the "dumping" country. Exporting at a loss, to be made up by 
high cost to domestic consumers', cannot be a lasting policy, for 
it is a losing one for the country that indulges in it; and while it 
may at times cause disturbance in a single industry in the country 
where the surplus is sacrificed, it cannot permanently injure that 
country's trade. 

THE CUSTOM A COMMON ONE WITH EUROPEAN MANUFACTURERS. 

Hon. Richard Guenther, United States Consul-General at 
Frankfort-on-the-Main, Germany, in a report to the State Depart- 
ment in June, 1904, says : "The manager of the carbon works of 
the General Lighting Company writes to the Daily Mail in refer- 
ence to the proposal of a German firm to establish in England 
large works for the manufacture of carbons for electric arc lamps. 
That the English factory at Witton, near Birmingham, has for the 



THE TARIFF. % 28 

last two years turned out carbons for the government, municipali- 
ties, and other users of a quality and at prices which compete 
with German manufacturers. The amount of 'dumping' with a 
view to killing the carbon industry in this country would, he adds, 
astonish the most inveterate free importer. Foreign manufac- 
turers sell at something like 40 per cent cheaper than in their 
own country." 

Sales of Steel Ralls Abroad at Less Than Home Prices. 

Much complaint has been made by the Democrats of the fact 
that in certain instances steel rails have been sold in foreign 
markets, especially in Mexico and Canada, at $22 per ton, against 
a uniform price of $28 per ton charged in the United States by 
the steel rail manufacturers of the country. Curiously this com- 
plaint has come from the Democratic politicians and not from 
the railroads, the sole purchasers of steel rails. This fact, that 
the railroads are making no complaint, justifies a careful examin- 
ation of the question as to whether they are being required to 
pay excessive prices at home, or whether, on the other hand, the 
sales abroad are^ being made at cost or below cost for purposes 
satisfactory to the manufacturers who are making those sales. 

The question of whether prices demanded by agreement among 
steel manufacturers in the United States are excessive, might be 
answered by an elaborate analysis of the cost of producing steel 
i-ails and the percentage of profit which manufacturers ought to 
make on their products ; but this elaborate and complicated method 
of. determining the question of whether the manufacturers are 
obtaining excessive profits is not necessary. There is a much 
nore simple and practical method of determining it. No class 
of business men in the United States are more acute, more thor- 
oughly posted on the cost of producing the materials which they 
must constantly buy than the railway managers of the coun- 
try, and no class of men are better able to command the necessary 
money with which to establish factories for the manufacture of 
those materials in case they felt it to be to their advantage to 
nanufacture for themselves instead of buying them at the prices 
demanded by the present manufacturers. It will be # conceded 
by everybody that the railway managers of the United States 
number among their ranks the most acute and able business men 
and financiers of the country. They, of all men in the United 
States, would be most likely to know whether they were being im- 
posed upon in the prices demanded of them by manufacturers of 
the article for which they pay such enormous sums of money 
every year. The railroads pay to steel rail manufacturers fully 
75 million dollars a year for steel rails, and they, with their keen 
instinct and unlimited facilities, can easily know, and certainly do 
know whether the prices charged are excessive. What would be 
easier than for them to establish steel rail works of their own, 
aDd what would they be more certain to do than this if 
they were being charged excessive prices? They can command 
unlimited capital. There is no class of business men in the 
United States who could more readily raise a million, ten mil- 
lions, a hundred million dollars, or even a greater sum with 
which to establish steel rail manufacturing plants to supply them- 
selves with this material for which they are now paying to the 
manufacturers 75 million dollars a year. What would be more 
natural than that they should establish steel-rail plants if they felt 
that they were being imposed upon in the prices now charged? The 
very fact that these trained and acute business men, with their 
knowledge of the cost of the article for which they are paying 
such large sums of money, and with their facilities for obtaining 
unlimited capital with which to establish works of their own, do 
not establish such works, but go on quietly and uncomplainingly 
paying for steel rails this price of $28 per ton to the manufac- 
turers of the country is sufficient evidence that they do not con- 
sider the prices charged them excessive, and that those prices are 
not excessive. 

Another fact worthy of note in this connection is that the 
steel-rail manufacturers made no advance in prices during the 
period of great demand and general high prices for iron and 
steel, from 1900 to 1903, though prices of all other grades of iron 
and steel greatly advanced meantime. . 



24 THE TARIFF. 

REASONS FOR FOREIGN OUT. 

This brings us to the question of, or reasons for, the sales 
abroad at j trices less than those charged at home. These reasons 
are easily found. First, the American manufacturers who desire 
to sell their rails in Mexico, for example, must do so in direct and 
full competition with the steel rail manufacturers of Europe. The 
cheaper labor of European countries enables the manufacturers 
there to produce rails at a much lower cost than they can be 
made here, and the fact that foreign rails can be transported 
most of the distance by water, while those from our own great 
manufacturing establishments must be transported to Mexico a 
large part of the distance at least by land, places European manu- 
facturers at least on equal footing with those of the United States 
in the Mexican markets. And it is also well known that the 
manufacturers of European countries make their foreign prices 
below those which they charge in the home markets for the pur- 
pose of building up markets in those countries. This plan of opera- 
tion on the part of European manufacturers in placing their rails 
in Mexico brings to the lowest point the prices with which Ameri- 
can steel rails must compete in that market. If therefore the 
steel rail manufacturers of the United States desire to establish 
a market in Mexico they must put their prices at a point at which 
they can compete with the rates named by other countries, else 
they will make no sales and establish no market, but will abandon 
to European manufacturers a market in a country just alongside 
of the United States. In addition to this, steel works are being 
established in Mexico, where rates of wages are extremely low 
and the prices at which rails will be turned out when this ii 
dustry is further developed will be very low, hence the impoi 
ance of retaining control of that market even at low rates of 
profit Thus the steel-rail manufacturers of the United States, if 
they desire to sell their products in Mexico at all, must do so at 
a price which will compete with European manufactures and 
Mexican manufacturers and with the. cheap labor of both coul- 
tries. 

Still another condition with which American manufacturers 
must conTpete in Canada is the fact that the Canadian govern 
ment is now paying a bounty to the steel manufacturers of that 
country, and this supplies another form of competition which 
the American manufacturer must meet if he attempts to sell his 
steel rails in Canada. 

Thus the American steel-rail manufacturer, if he desires to 
establish a market for his product in Mexico, must compete with 
the cheap labor of Europe and the still cheaper labor of Mexico ; 
and if he desires to sell his product in Canada he must com- 
pete with the cheap labor of Europe, plus the bounty paid 
to domestic manufacturers by the Canadian government. Unless 
he does make his prices to meet those conditions in the two coun- 
tries lying alongside of the United States he must abandon the 
hope of ever establishing in those countries a market for any 
of his products. Under these conditions it is not surprising that 
he should find it good business policy to temporarily relinquish 
his profits for the sake of establishing or holding markets in coun- 
tries at his very door, and also that he should at times dispose of 
his surplus stock in those markets at cost or even less, for the sake 
of keeping his works running and his workmen employed, rather 
than to reduce his working force and permit his machinery to de- 
teriorate by so reducing his product as to make it only equal to the 
home demand. 

To put it in a single sentence: It is apparent, first, that the 
prices charged in the home markets are not excessive, else the 
railroads would establish their own works for the manufacture 
of rails ; and, second, that if American manufacturers are to sell 
their rails abroad they must put them at a price at which they 
can meet European competition and cheap labor competition in 
Mexico, and at which they can also meet European competition, 
plus domestic bounties in Canada. 

In general terms it may be said that the sales abroad of steel 
rails and of other classes of iron and steel at less than domestic 
prices are exceptional and only made under exceptional condi- 
tions, either .for the purpose of gaining new trade, just as is done 
thousands of times every year in many lines of trade at home, 



THE TABTFF. 25 

or for the purpose of disposing of surplus stock and thus keeping 
irills running at fuil rates and giving full employment to labor 
a|id the low prices of product which full working capacity ren- 
ders possible. 

[ On this subject Mr. James M. Swank, general manager of 
tie American Iron and Steel Association, a high authority, the 
accuracy of whose statements is never called* in question, in a 
letter to Hon. John Dalzell in February, 1902, made the following 
statement: • 

/ "With regard to the prices at which our iron and steel products 
have been sold abroad it can be said with entire frankness that, 
\rhile there have been some sales made at lower prices than have 
been charged to domestic consumers, the large majority of the 
sales have been made at the same prices' as have been obtained at 
home or at even higher prices. When lower prices have been 
charged the inducement to do this has been to dispose of a sur- 
plus, as during the yea"rs of depression following the panic of 1893 
or during the reactionary year 1900, or to secure entrance into a 
desirable foreign market, or to retain a foothold in a foreign mar- 
ket that has already yielded profitable returns. These reasons for 
the occasional cutting of prices require no defense. They are akin 
to the reasons which daily govern sales of manufactured and all 
other products in domestic markets. 

"Even in years of prosperity it sometimes happens that a roll- 
ing mill or steel works, when running to its full capacity, produces 
a surplus of its' products beyond the immediate wants of its custo- 
mers or of the general market. If this surplus can be sold abroad, 
even at prices below current quotations, it is better to do this than 
to reduce production by stopping the rolling mill or steel works 
for a few days' or even for one day. The men would not only lose 
their wages during the stoppage but the manufacturers would lose 
in many ways. As one incident of the stoppage the home con- 
sumers of their products could not be supplied so cheaply as when 
the plants are running full. A moment's' reflection will convince 
any candid man that the manufacturing establishment that is not 
kept constantly employed, whether it produces iron and steel, or 
cotton goods, or woolen goods, or pottery, or glassware, or any 
other articles, can not be operated so economically for its owners' 
or so beneficially for its customers as the establishment that is 
kept running six days in the week and every week in the year. 

"It should also be remembered that our tariff legislation for 
at least a generation has encouraged our manufacturers to seek 
foreign markets by remitting nearly all of the duties levied on im- 
ported raw materials when these raw materials enter into the 
manufacture of exported finished products. Under the operation 
of this drawback system our iron and steel manufacturers have 
been able to manufacture their products intended for foreign mar- 
kets at a much lower cost than they could supply similar products 
to home consumers. The London Engineering for January 17, this 
year, says of this drawback system: 'A certain amount of trade 
is brought into the country that would otherwise be missed and no 
one loses anything.' It might have added that the raw materials 
we import and subsequently export in the form of finished prod- 
ucts furnish employment to thousands of American workmen." 

Effect of Protection on Export Trade. 

One of the assertions made and offered as an argument against 
protection is that high tariffs established by a country lead other 
countries to discriminate against the products of that protection 
country and exclude them from their markets, either by adverse 
legislation or otherwise. Let us see about this. "The proof of 
the pudding is in the eating." The proof of the effect of pro- 
tective tariffs upon the export trade of the countries having such 
protection is found in the measure of the actual growth of their 
exports as compared with the growth of countries not having a 
protective tariff and offering in the world's markets the same 
class of goods as those offered by the protection country. The 
United States Bureau of Statistics has recently published a Sta- 
tistical Abstract of the World, which gives the exports of do- 
mestic products by each of the principal countries of the world 
during a long term of years. It is easy, then, to compare the 
growth in exports by the countries having a protective tariff with 
that of the single remaining nonprotected country — the United 
Kingdom. The two most strongly marked examples of protec- 
tive tariff countries are Germany and the United States, and the 
chief free-trade country of the world is the United Kingdom. 
These three countries are also especially suitable for contrast in 
the effects of their respective tariff policies upon their export 
trade by reason of the fact that they are the chief competitors for 
the great markets of the world and the only- countries of the 
world whose annual exports reach or pass the billion dollar line, 
each of these countries exporting annually more than one billion 
dollars' worth of merchandise, while no other country of the world 



26 THE TARIFF. 

has ever exported so much as one billion dollars' value of domestic 
products in a single year. Let us see, then, what the effect of pre- 
tention has beep upon sales abroad by the United States aid 
Germany, the world's most conspicuous examples of protectiv- 
tarilT countries, as compared with the effect of free trade upai 
exports from the United Kingdom, the world's most marked ex- 
ample of low-tariff countries. The Statistical Abstract, above re- 
ferred to, compiled from the official figures of the countries to 
question and issued by the Bureau of Statistics, shows that the 
exports of domestic products from free-trade United Kingdom 
grew from 1,085 million dollars in 1880 to 1,380 millions in 1902, 
an increase of 28 per cent; while those from protection Ger- 
many grew from 688 millions in 1880 to 1,113 millions in 1902, 
an increase of 62 per cent; and those from protection United 
States grew from 824 millions in 1880 to 1,355 millions in 1902, 
an increase of 64 per cent. In other words, exports from the 
world's greatest example of free trade — the United Kingdom — 
increased 28 per cent in 22 years ; those from protection Germany 
increased 62 per cent, and those from protection United States in- 
creased 64 per cent in the same period. This certainly does not 
justify the assertion that other countries discriminate against and 
reject the merchandise of the country having protective tariff 
laws and favor that of countries having free trade. 

While of course the general law of supply and demand in- 
fluences in a greater or les^ degree the volume of exports from 
year to year, the experiences above cited are sufficient to clearly 
indicate that the existence of a protective duty on imports does 
not result in an exclusion of our exports by other countries, since 
our exports have increased enormously during the operation of 
protective tariff laws. 

EXPORTS UNDER THE UNITED STATES TARIFF. 

Another and even more striking illustration of*the growth 
of exports under low tariff and protection, respectively, is found 
in a study of the detailed history of the tariffs and export trade 
of the United" Stages. The only protective tariffs which the 
United States had prior to 1861 operated during the years 1813-16, 
1825-33, and 1843-46, an aggregate of 17 years prior to 1861. Since 
that time protective tariffs have covered the years 1861-94 and 
1897-1903, making the total of the period covered by protective 
tariffs 58 years, against 57 years of low tariff, counting the forma- 
tive period from 1790 to 1812 as low tariff. Thus the history of 
the United States under the Constitution is about evenly divided 
between protective tariff and low tariff. Now, let us see the 
result in its effect upon our exports during those two great periods 
of protection and low tariff — 58 years of protection and 57 years 
of low tariff. During the 57 years of low tariff the imports ei 
ceeded the exports by $514,954,931 ; during the 58 years of pr* 
tective tariffs the exports exceeded the imports by $4,099,026,861. 
These statements are compiled from official reports of the 
United States Bureau of Statistics, and their accuracy can not be 
called into question. During 57 years of low tariffs imports ex- 
ceeded exports by 514 million dollars ; during 58 years of pro- 
tection exports exceeded imports by 4,099 millions. Does this look 
as though protective tariffs had the effect of reducing or de- 
stroying the export trade? 

To sum up these official statements of exportation under low 
tariffs and protective tariffs — the statements being in every case 
from the official' records of the country in question — it may be 
said that exports from the United Kingdom under free trade in- 
creased 28 per cent from 1880 to 1902; while those from Ger- 
many and the United^ States, under protection, increased 62 per 
cent and 64 per cent, respectively, in the same period, and that 
in the history of the United States, under the present form of 
government, 57 years of free trade gave an excess of imports 
over exports amounting to 514 million dollars, and 58 years of pro- 
tection gave an excess of exports over imports amounting to 4,099 
million dollars. This is the practical test, the "proof of the pudd- 
ing in the eating," and should put an end forever to the assertion 
that protection destroys or injures the foreign markets of the 
country adopting it. Of the 57 years of low tariff, 47 show an 



1 



THE TARIFF. 27 

etcess of imports over exports, while of the 58 years of protective 
tariff, 33 show an excess of exports over imports. A table printed 
on page 62, compiled from the official reports of the Treasury 
Department and the Department of Commerce and Labor, shows 
t^e years in which low and protective tariffs, respectively, were 
in operation, and the excess of imports or exports in each year, 
also the total excess of exports under low and protective tariffs, 
respectively. 

Ia There Danger of European Combinations Against the United 
States on Account of Our Tariff? 

Statements have been made from time to time that European 
countries were likely, by reason of the high protective tariff in 
the United States, to enter into an agreement for the exclusion of 
our products from their markets. This assertion has been made 
over and over again for years, but more especially in comparatively 
recent years. But such action seems highly improbable, for the 
following reasons: 1. The countries in which these threats of 
retaliation are most frequently heard are themselves, in all cases 
except the United Kingdom, protective-tariff countries, and it is 
unlikely that they would seriously and through official action 
complain of a protective tariff established in any other country. 
2. The European countries can not afford to exclude our staple 
products, which are required in such large quantities by their 
people and which would advance in price in their markets if the 
supply from the world's largest producer were cut off. 3. The 
exclusion of these necessary products from the United States would 
necessitate their importation from other countries, and by re- 
ducing the supplies in these other countries would make markets 
for our products in those countries drawn upon or in other coun- 
tries from which they had been accustomed to draw their sup- 
plies. 4. Experiments of this kind for the exclusion of our meats 
from certain European countries have not resulted in a reduction 
of our total exports of meats and other provisions. 5. The 
countries which have complained most bitterly of the tariff of the 
United States have steadily and rapidly increased their impor- 
tations of our products meantime. 6. During the very period 
in which the talk of exclusion from European cqgnt^ajgs^f Amer- 
ican manufactures have been made, our exports of manufactures 
to those countries have most rapidly increased. 

As to the first proposition, it is from the European countries 
that the threats of retaliation against the protective-tariff laws 
of the United States are most frequently heard. Yet all of the 
leading countries of Europe, with the exception of the United 
Kingdom, have within comparatively recent years adopted pro- 
tective-tariff systems and in most cases are now increasing or 
proposing to increase their rates of duty for the avowed pur- 
pose of making their tariffs more thoroughly protective. In the 
case of the United Kingdom, the only European country of im- 
portance not having a protective tariff, the adoption of a pro- 
tective system is being strongly urged. It seems highly improb- 
able that a country officially adopting a tariff system with the 
explicit purpose of protecting its own industries would complain 
of like action on the part of any other country, even if the rates 
which that country imposes were higher than those which it 
imposes. 

RETALIATION A BOOMERANG. 

The European countries in question are large consumers of the 
great products of the United States — cotton, wheat, corn, meats, 
and other forms of provisions — as well as of manufactures. The 
United States is the world's largest producer of every one of these 
articles. She produces three-fourths of the cotton of the world; 
three-fourths of its corn; three-fifths of the wheat entering the 
European markets from extra-European countries; and ; two- 
fifths of the meats which enter into international commerce. The 
European countries, with possibly one or two exceptions, do not 
produce a sufficient supply of these articles for their respective 
home markets'. They must buy them in large quantities from some 
other part of the world. One important effect of excluding from 
their markets the products of the worfa's principal source of 
these various articles must be to increase in their home mar- 
kets the prices of those articles. If through concerted action by 
these countries three-fourths of the world's supply of cotton (pro- 



28 THE TARIFF. 

I 

duced in the United States) were excluded from tbeir markets 
naturally tho price for the remaining one-fourth of the world's 
cotton, wherever produced, would advance greatly, and this prn- 
ciple would apply in the exclusion of any <>f the great produces 
of which the United States exports a sufficiently large percentile 
to make absence of its product a factor in determining prices. 
Imagine the effect upon the price of wheat if three-fifths of the 
extra-European supply for European markets were destroyed in 
a single hour or day. Imagine the effect upon prices of meats if 
40 per cent of the world's available supply for the internatioiial 
trade were wiped out of existence. Note the effect upon the price 
of cotton due to a small shortage in the crop of the United States 
last year, and consider what would be the effect if all of the cotton 
supply of the United States— three-fourths of that which the world 
produces — were shut out of the markets demanding that cotton. 

Even if certain countries were to exclude the great products 
of the United States from their markets they would be com- 
pelled to draw their supply from some other country or countries, 
and the products of the United States would find her markets in 
those countries thus drawn upon or in the countries to which 
they had formerly furnished their surplus. The world's pro- 
duction of the requirements of man — cotton, corn, wheat, pro- 
visions — is no more than the quantity required by the various 
parts of the world which are now brought into such close com- 
mercial relationship by reason of cheap transportation, and if 
through the exclusion of our products from certain countries the 
products of other countries were drawn upon to supply those mar- 
kets our products would in turn find a sale in the other parts of 
the world thus affected by that change in supply. These great 
requirements of man for food and clothing, demanded as they are 
in, every part of the world, and easily transported to any given 
spot, like water, seek their level, and the exclusion of our pro- 
ducts from one country or group of countries would simply result 
in their finding markets in the spot from which those consuming 
countries might draw their supply. 

RESULTS OF EXPERIMENTS IN RETALIATION. 

Certain experiments in the exclusion or attempt to exclude 
American products have been made in European countries during 
the past twenty years, and the effect of those experiments upon our 
sales of the articles in question is worth noting. Beginning about 
twenty years ago certain of the European countries began the ex- 
clusion of certain classes of meats from the United States, charg- 
ing that they were dangerous to public health by reason of the 
presence of trachinaB in hogs, Texas fever and other diseases in 
cattle, and upon other but somewhat similar grounds. These rul- 
ings or legislation against American meats extended from country 
to country upon various pretexts during a series of years down 
to a very recent date, proving in each case more or less a barrier 
against the meat products of the United States. They resulted 
in some cases in more stringent export regulations by the United 
States', and in some cases in a modification of! the legislation or 
regulations in the country of importation, and the net result has 
been a steady growth in the exportation of provisions from the 
United States during the very period in question. The total value 
of provisions and animals for food exported from the United 
States in 1880, the approximate date at which this adverse move- 
ment against provisions from the United States began, was 130 
million dollars, and 235 millions in 1902, a growth of more than 
100 million dollars in exports of provisions and live animals for 
food purposes during the very period in question, and a very large 
proportion of this growth was in exports of those articles to 
European countries. 

Another evidence of the indisposition of other countries to at- 
tempt to exclude the required products of the United States from 
their markets is found in the fact that although a dozen of the 
great countries of the world simultaneously protested against the 
Dingley tariff act, no one of those countries excluded any of the 
products of the United States following the enactment of that 
law or even reduced by a single dollar the value of their pur- 
chases from this country. These protests, while not a joint 
action, and while relating in some cases to different features of 



THE TARIFF. 29 

the act from those complained of by other protesting countries, 
were practically simultaneous, and as the passage of the act with- 
out recognition of their protest was a simultaneous rejection by 
the United States of those protests, the occurrence offered to 
them a special and unique opportunity for combined action in ex- 
cluding our products from their markets. Yet not a single one of 
those countries took such action, and in no case did they reduce 
their purchases from the United States. On the contrary, our 
exports to every one of the 12 countries have increased.- Our 
exports to the 12 countries which protested against the act in 
question were in 1896 $618,688,000, and in 1903 $925,447,000, an 
increase of 50 per cent as compared with 1896, the year prior to 
that in which these protests were made. (See table of countries 
protesting against Dingley law, and exports to them, page 30.) 

Even in manufactures, of which the European countries are 
large producers, and against which they have most vigorously 
protested, our exports to those countries have steadily grown 
during the years in which threats of exclusion have been most 
frequently made. Expressions of hostility to manufactures from 
the United States and threats of legislation or rulings to bring 
about their exclusion have been most strongly marked during 
the short period since 1895. Yet in that period exports of manu- 
factures from the United States to Europe, the very section of the 
world from which these threats of exclusion came, have doubled, 
our total manufactures exported to Europe in 1896 being $96,- 
961,020, and in 1902, $197,572,992, while those of the fiscal year 
1904 exceed 200 million dollars. 

• Besides, the complete power of the United States to pro- 
tect itself against retaliation must not be overlooked. The only 
countries from which there could be any possibility of danger 
are the leading industrial and commercial nations of Europe. 
Their policy is protective, so is ours. But if they are compelled to 
buy largely of our products from necessity, we buy largely of 
theirs from choice. We are among their best customers. Our 
imports in 1903 were from Germany, $119,772,511; from France, 
$77,285,239; from Austria-Hungary, $10,569,929; from Belgium, 
$22,567,337; from Italy, $36,246,412; from the Netherlands, $22,- 
868,978. What they buy of us are necessaries; what we buy of 
them are chiefly luxuries. If they were to proscribe our products 
we could more easily proscribe theirs. So long as we maintain 
the protective policy we can defend ourselves; the more we ad 
vance towards free trade the fewer weapons of defense we hold. 

Thus, both the logic of the situation and our actual experience 
with adverse legislation and threats of such legislation fail to 
justify the assertion that our products of any class are being ex- 
cluded or are likely to be excluded from the markets of other 
countries by reason of our protective tariff. 



TRADE OF THE UNITED STATES WITH COUNTRIES PROTESTING AGAINST 
THE DINGLEY TARIFF ACT. 

The table which follows shows the trade of the United States 
with each of the 12 countries which protested against the Ding- 
ley tariff act during its pendency in Congress in 1897. The 
figures cover the period from 1896, the year prior to the enact- 
ment of that law, to and including the fiscal year 1903. It will 
be seen that the exports to each of the countries have increased. 
This record is deemed important in its bearing upon the claim that 
other countries are likely to reduce their imports from the 
United States by reason of the protective tariff. In this case, 
12 leading commercial countries of the world had almost simul- 
taneously protested against certain features of this act, not all 
of them against any single feature, but each of them had made 
a protest ; yet the act was passed in the original form without 
modification so far as related to the features referred to in the 
protests, and instead of a reduction in exports to those countries 
there, has been a steady increase in all cases, and the total expor- 
tation from 'the United States in 1903 to the 12 countries in ques- 
tion was $953,585,567. as against $618,687,429 in 1896, having 
thus increased $335,898,138, or 54 per cent, over the exports to 
those countries in 1896. 



30 



THE TARrFF. 



EctporU from the United States to the countries which protested 
against the Dingley tariff 1>M, showing Increase in ewporU after 
enactment of the law. 



Count ri.'s. 


Year ending June 30— 


1896. 


1897. 


1898. 


1899. 


United Kingdom 


$405,741,339 

97.897.197 

* 39,022.899 

27,070.625 

19,143,606 

7,689.685 

6,557,448 

6,921.933 

5.979.046 

2.439,651 

191,046 

32.954 


$483,270,398 

125,246.088 

» 51,045.011 

33.071,555 

21.502.423 

13,255.478 

10.194.857 

11,924.933 

6,384.984 

4,023.011 

110.763 

70,871 


$540,940,605 

155.039,927 

64.274,524 

47,619,201 

23.290,858 

20,385,041 

12,697,421 

9,992,894 

6,429,070 

5,697,912 

127,559 

263,970 


$511,778,705 


Germany 


155.772,179 


Netherlands 


79,305,998 


Belgium 


44.158,03:? 


Italy 


25,034,940 


Japan 


17,264.688 


Denmark 


16,605, H2H 




14,493 440 


Argentina 


9,563,510 


Austria-Hungary 


7.378,935 


Greece 


213.507 


Switzerland. 


267,732 






Total to countries 


618,687,429 


760,099.827 


886.159,527 


881,837.495 



Countries. 


Year ending June 30— 


1900. 


1901. 


1902. 


1903. 


United Kingdom 


$533,819,545 

187.347,889 

89,386,676 

48,307,011 

33,256,620 

29,087,475 

18,487,991 

15,259,167 

11.558.237 

7,046,819 

290,709 

250,447 


$631,177,157 

191,780,427 

84.356.318 

49,389,259 

34,473,189 

19,000,640 

16.175,235 

10.405,834 

11,537.668 

7.222.650 

291.538 

255,360 


$548,548,477 

173,148,280 

75.123,135 

46,271.756 

31,388,135 

21,485,883 

15.464,622 

24,722,906 

9,801,804 

6,167.127 

305,950 

217,515 


$524,262,656 


Germany 


193,841 636 


Netherlands 


78,245,419 


Belgium 


47 087 939 


Italy 


35,032 680 


Japan 


20.933 692 




16 157 583 




18 898 163 




11.437,570 

7.156.688 

330,844 

205 697 


Austria-Hungary « 


Switzerland 






Total to countries 


974.098.616 


1.056.065.279 


942.645.590 


953.585.567 



Protective Tariff as a Revenue Producer. 

In the matter of revenue the contrast between low and pro- 
tective tariffs is equally striking. In the 57 years of low tariff 
no less than-22 of the total showed an excess of expenditures over 
receipts by the Government; while in the 58 years of protective 
tariffs 44 of the total showed an excess of receipts over expendi- 
tures. Of the 14 years under protective tariffs in which the ex- 
penditures exceeded the revenues no less than nine were war 
periods, when, necessarily, expenditures exceeded receipts from 
ordinary sources, while in only two of the years in which deficits 
occurred under low tariffs could that deficiency be charged to war 
conditions. The war of 1812-14, the civil war, and the war with 
Spain all occurred during protective-tariff periods ; while the war 
with Mexico occurred during a low-tariff period. Excluding the 
war periods from consideration, it may be said that of the 55 
years of peace, during which low tariffs were in operation, 20 
years showed a deficit; while of the 49 years of peace, during 
which protective tariffs were in operation, only five showed a 
deficit. 

Considering the entire history of the country, under the Con- 
stitution, but excluding the war years, it may be said that the 
revenues of the Government during low tariff periods fell $33,- 
143,242 below expenditures, while under protection, still exclud- 
ing the war years from consideration, the revenues exceeded the 
expenditures by the enormous sum of $2,122,189,005. 

To sum up in a single sentence the revenue records of low and 
protective tariffs, respectively, during years of peace, low tariffs 
showed a deficit in 20 out of the 55 peace years in which they 
were in operation, while protective tariffs showed a deficit in 
but 5 of the 49 peace years in which they were in operation, 
the low tariffs producing a total deficit during their entire 55 
peace years of operation amounting to 33 million dollars, and 
the protective tariffs a surplus of 2,122 millions during the 49 
years of peace in which they were in operation. "The proof of the 
pudding is in the eating." Fifty-five peace years of low tariff, 



THE TARIFF. , 31 

deficit, 33 million dollars; forty-nine peace years of protection, 
surplus, 2,122 millions. (For table of revenues under low and 
protective tariffs, respectively, see page 59.) 

The Home Market. 

The object of a protective tariff is to conserve and develop 
the home market for the home producer. By this is meant not 
merely the home manufacturer, but the home producer of every 
class, because of the development of each domestic industry 
through the prosperity of other domestic industries. While pri- 
marily protection in the United States looks especially to the de- 
velopment of the manufacturing industry, that development of the 
manufacturing industry in turn develops other industries. To 
produce the enormous supplies of manufactures required by our 
own people — the farm, the forest, the mine, and even the fisheries 
are called upon for material to aid in this work. Not only are 
all of these branches of industry thus developed by the mere 
calls upon them for material for use in manufacturing, but the 
millions of men and women engaged in manufacturing and other 
dependent industries through their prosperity and employment at 
good wages have the means with which to purchase and pay for 
these products. The manufactures of the country require from 
the farmer cotton, wool, hides, flax, hemp, the grain which is 
manufactured into flour, meal, etc., and the numerous other arti- 
cles of lesser importance ; they require the products of the mine, 
coal, iron, copper, zinc, tin, lead, nickel, gold and silver ; and 
they require of the products of the forest large supplies. These 
industries — manufactures, mining and forestry — employ more than 
six million people and pay them wages amounting to three bil- 
lions of dollars annually, which they in turn expend for the pro- 
ducts of the farm, the fisheries, the mines and the factories. Thus, 
under protection, each industry, through its activities, stimulates 
other industries, while those other stimulated industries, through 
the prosperity of the persons engaged in them, in turn become 
consumers and purchasers, thus developing and stimulating the 
production and prosperity of every occupation and industry of 
the country. 

MUTUAL INTERDEPENDENCE THE KEYNOTE. 

The interdependence of the great industries of the country 
and the dependence of each for its prosperity upon the success 
and prosperity of the others can better be realized when it is 
stated that of the 2,389 million dollars' worth of raw materials 
used by the manufacturers of the United States in 1900, no less 
than 1,941 million dollars' worth was the product of agriculture, 
and only 156 million dollars' worth of this was imported. These 
figures are from the official statements of the United States cen- 
sus and the Bureau of Statistics. Thus, 75 per cent of the raw 
material used by the manufacturing industries of the country 
is drawn from our own farms, the remainder being products of 
the mines and forests and miscellaneous imports. These figures 
indicate the interdependence of the great industries of the coun- 
try and the relation of the prosperity and activity, one by one, 
to the prosperity and activity of the other. This interdependence 
is especially shown by the figures which indicate the use of agri- 
cultural products in the manufacturing industries of the coun- 
try. As already indicated, 75 per cent of the raw materials used 
by the manufacturers of the United States are products of our 
own agriculture. 

The total value of the farm products of the United States in 
1900, according to the census of that year, was 3,764 million 
dollars, and the total value of agricultural products used in man- 
ufacturing was 1,940 millions. Of this 156 millions was im- 
ported and the remaining 1,785 million dollars' worth was drawn 
from our own farms. Thus, our own agricultural products used 
in the manufacturing establishments of the United States, ac- 
cording to the official figures of the census of 1900, actually 
amounted to more than one-half of the total value of the products 
of the farms' of the country in that year. When to this we add the 
enormous demands made upon the farmers for food supplies for 
the six million people employed by the manufacturers and in the 
other industries from which the manufacturers draw part of 



32 THE TABIFP. 

their material, the importance to the farmer of the prosperity of 
the manufacturers can scarcely be over-estimated. 

Another class of consumers whose prosperity and therefore 
purchasing power depends greatly upon the activity of the manu- 
facturing interests is those engaged in transportation, while still 
another group is those engaged in trade. These two groups of 
people— those engaged in transportation and trade — numbered in 
1900, according to the census of that year, 4,766,965 persons, or 
more than 16 per cent of those engaged in "gainful occupations" 
in that year. 

THE WELFABE OF EACH THE WELFARE OF ALL. 

The total number of persons engaged in "gainful occupations" 
in 1900, according to the census of that year, was 29,074,117. Of 
these, 10,381,765 were engaged in agriculture; 7,085,992 in manu- 
facturing and mechanical pursuits; and 4,766,964 in trade and 
transportation. Thus, of the 29 million people engaged in "gain- 
ful occupations" in the United States in 1900, 22 millions, or 
76 per cent, of the total number, were engaged in agriculture, 
manufacturing, transportation and trade — all dependent for their 
activity upon the prosperity and activity of the manufacturing 
industries. On the other hand, the manufacturing industries 
were equally dependent for their success and for a home mar- 
ket for their products upon the prosperity of these three great 
groups engaged in agriculture, manufacturing, transportation, and 
trade. There remain in the census classification two other groups 
of people, viz, those engaged in domestic and personal services, 
5,580,657, and those engaged in professional service, 1,258,739, 
and nobody can doubt that either of these great groups is equally 
dependent for its prosperity upon the prosperity of those engaged 
in agriculture, manufacturing, transportation, and trade, or that 
their prosperity as consumers is in turn important to the manu- 
facturer, the agriculturist, and those engaged in trade and trans- 
portation. 

Thus the interdependence of the people and industries of a 
great nation such* as the United States, with its enormous area 
equal to that of all Europe, and with its variety of climate, soil 
and products of field, forest, mine and factory, fully justifies the 
application of the protective principle, which insures prosperity 
and activity to that great industry of manufacturing, which in 
turn contributes so greatly to the activity and prosperity of all 
other industries. -The gross value of the manufactures of the 
United States in 1900 was 13 billions of dollars, against less than 
four billions for products of the farm, and one billion dollars, pro- 
ducts of the mine. The number of persons employed in manufac- 
turing was 5% millions, and the sum paid to them as wages and 
salaries 2% billions of dollars, or more in a single year than the 
entire amount of money in circulation in the United States todry. 
Practically all of this sum, together with most of the seven bil- 
lions of dollars expended for materials used by the manufacturers, 
was distributed among the people of the United States, chiefly to 
the farmers whose products formed over 80 per cent of the value 
of the materials used, and who also supplied the food consumed 
by these five million employees, and in addition profited by the in- 
creased activity resulting in the other industries of mining, for- 
estry, transportation, and trade. 

THE HOME MARKET THE GREATEST MARKET. 

These great facts — the aid which each industry proves to other 
industries in a country which supplies practically all of the re- 
quirements of man, whether in manufacturing or for food, cloth- 
ing, heat, and light — make the home market of the United States 
the greatest market of the world. That -this home market in the 
United States far exceeds that offered in any other part of the 
world was shown by the chief of the Bureau of Statistics, Mr. O. 
P. Austin, in an address at Rochester, N. Y., on January 7, 1904, 
in which he said : 

"The internal commerce of the United States was in 1900 20 
billions of dollars. With this definite basis of 20 billions in 1900, 
and knowing what rapid development has occurred since that time, 
we may safely and conservatively put the internal commerce of 
the year 1903 at 22 billions of dollars, a sum which actually 
equaled the entire international commerce of the world in that 



THE TARIFF. 33 

year. Think of it, you producers and manufacturers, and merch- 
ants and traders and bankers and transporters, think of it! The 
market of our own country — the home market in which you can 
transport your goods from the door of the factory to the door 
of the consumer without breaking bulk a single time — is equal to 
the entire international commerce of the world." 

This is the measure of the home market, of its value, and of 
its importance to every class of citizens, and indicates the im- 
portance of maintaining the system under which it has been de- 
veloped. Mr. Austin, in his remarks above quoted, showed also 
that this same home market had grown from only seven billions 
of dollars in 1870 to 22 billions in 1903, basing his estimate in both 
cases upon the figures of the United States census, having thus 
trebled in 33 years, while the international commerce of the world 
had only doubled during that same period of 33 years. Thus not 
only is the home market of the United States equal to the com- 
bined imports and exports of the world, but its growth is much 
more rapid than that of the markets offered in other countries. 

Labor and Protective Tariff. 

The importance to labor of the protective system and the activi- 
ties which develop under it can scarcely be overestimated. Of 
the 29 million people engaged in "gainful occupations" in 1900, 
7 millions are directly dependent upon manufacturing and mechan- 
ical industries, and 4% millions upon trade and transportation, 
which are so closely associated with and affected by the activities 
of manufacturing. Practically one-half of the products of agricul- 
ture are, as indicated by the census, consumed by the manufactur- 
ing industries. Hence a large proportion of the 10 million persons 
engaged in agricultural pursuits are dependent for their prosperity 
upon the activities of the manufacturing industries, to say noth- 
of the 6^ millions engaged in professional, domestic, and personal 
service, whose employment must depend largely upon general 
prosperity in manufacturing and allied industries. It is not mere- 
ly the 2% billions of dollars paid as wages and salaries to the 
employees of the manufacturing establishments of the country, 
but the earnings of more than half of those engaged in "gainful 
occupations" which are affected by and dependent upon the pros- 
perity of the manufactures. 

BANK DEPOSITS. 

That labor has been prosperous under the improved condi- 
tions in the manufacturing industries since the enactment of the 
Dingley tariff law is evidenced by the fact that deposits in sav- 
ings banks alone, those depositories of the working people, widows, 
and orphans of the United States, grevv from 1,907 million dol- 
lars in 1896, the last year under the low tariff, to 2,935 millions in 
1903, an increase of over 50 per cent. During the period in 
which low tariff was in existence or threatening the industries of 
the country — 1892 to 1897 — savings banks deposits increased but 
154 million dollars; since 1897 savings bank deposits have in- 
creased under a protective tariff 99G million dollars — the increase 
under Democratic low tariff being less than 40 million dollars per 
annum, and under Republican protective tariff, 166 million dollars 
per annum. Another evidence of prosperity among the masses is 
found in the amount of life insurance policies in force in the 
United States. Life insurance is another form of savings, and in 
the aggregate of its outstanding policies is to be found an equally 
important index of the prosperity of the people of the United 
States. During the period of threatened or actual Democratic 
low tariff, from 1893 to 1897, the value of life insurance policies 
in the United States increased from 5,291 million dollars in 1893 
to 6,326 millions in 1897, or an average of only 259 millions per 
annum. Since that time the increase under a Republican pro- 
tective tariff has been from 6,326 millions in 1897 to 10,508 millions 
in 1902, or at the rate of 836 millions per annum. Thus the value 
of life insurance policies in the United States increased in the 
four-year period of threatened or actual low tariff but 1,035 mil- 
lions, or 259 millions per annum, while from 1897 to 1902 the in- 
crease has been 4,182 millions, or 836 millions per annum, the rate 
of increase under a Republican protective tariff being more than 
three times as great as the annual rate of increase under Demo- 
cratic low tariff. 



I Ml 1 \HQ-t . 



INDUSTRIAL INSURANCE. 



It may be objected that life insurance includes among Its 
patrons men oi' wealth, and this is true; though they form but a 
small proportion, of course, of the total. But it will be admitted 
that this is not true of the industrial insurance associations, Which 
collect their premiums in small weekly sums, and certainly their 
prosperity and activity may be accepted as a measure of the 
actual prosperity of the working men of the country or 
of those dependent upon the prosperity of the great in- 
dustries. The statistics of industrial insurance in force in the 
United States, as published by the Bureau of Statistics, and sup- 
plied by that distinguished insurance statistician, Mr. Frederick 
L. Hoffman, show the amount of policies of industrial insurance 
in force in the United States, in 1893, at $662,030,129; in 1897. 
$996,139,424, and in 1902 at $1,806,890,804. Thus during the 
period of threatened or actual low tariff the amount of industrial 
insurance in force increased by 334 millions, while since that time, 
<luring a period of protective tariff, the amount has increased 810 
millions, the annual average rate of increase being, under Demo- 
cratic low tariff, 85 millions per annum, and under Republican 
protective tariff, 162 millions per annum. The actual number of 
industrial policies outstanding in 1893 was 5,751,514; in 1897, 
8,005,384 ; and in 1902, 13,448,134. Thus the increase in the num- 
ber of policies outstanding during the threatened or actual low- 
tariff period was 2,258,870; and from 1897 to 1902, a period of 
Republican protective tariff, 5,442,740 — an average annual rate of 
increase in the number of policies outstanding of but 563,470 under 
a Democratic low tariff, and of 1,088,548 under a Republican pro- 
tective tariff. 

CONDITION OF LABOR IN GREAT BRITAIN. 

No class of merchandise imported into a country represents 
labor in so large a proportion as do manufactures. Under free 
trade free-trade United Kingdom imported in 1902 700 million dol- 
lars' worth of manufactured and partly manufactured goods. The 
best experts estimate that labor forms fully one-half of the value 
of manufactures, taken as a whole. Of course in certain articles, 
such as fine laces, labor forms much more than one-half of the 
value, while in certain other articles, such as jewelry of gold, 
silver, or diamonds, the material forms the larger part of the 
value, and the labor a comparatively small proportion of the 
value. Taking manufactures as a whole, however, of the general 
class imported into manufacturing countries such as the United 
Kingdom or the United States, conservative experts estimate that 
labor forms fully one-half of the value in each case. Accepting this 
estimate it appears that the United Kingdom under free trade is 
every year permitting 350 million dollars' worth of foreign labor to 
come into direct competition with the working men of that country. 
In no country in the world is labor so highly organized for its own 
protection as in England. Yet with all of its organization for 
self-protection among its own employers and its own people, it 
is submitting to the introduction and competition in its own 
market and at its own doors of the labor of other countries at 
the rate of 350 million dollars a year. During the last decade 
the value' of the manufactures imported into the United Kingdom 
amounted to six billions of dollars, one-half of which represented 
foreign labor thus brought into competition with the labor of 
Great Britain. Through the free admission to the markets of the 
United Kingdom during the past decade, the labor of other coun- 
tries has absorbed three billion dollars of English money, a large 
part of which otherwise might have been paid to the workingmen 
of that country. While the labor of Great Britain is organized 
very thoroughly and persistently protested against competitive em- 
ployment of British labor not a part of those organizations, it has 
until recently made no protest against the introduction of labor 
from*other parts of the world in the form of imported manufac- 
tures, and in the absence of such protest three billion dollars' worth 
of labor has in the last decade been brought into the United King- 
dom in competition with her own labor and her own manufactures, 
with the result that the growth of manufactures is small-com- 
pared with that in the protection countries, while the exports of 
manufactures have fallen off, and the imports of manufactures 



THE TARIFF. 35 

have increased. The effect of this competition of foreign laborwin 
the United Kingdom or protection from foreign labor in 
the United States is illustrated in the relative earnings of similar 
classes in like occupations in the two countries. The British 
Blue Book, which recently published the results of care- 
ful investigation upon this subject, gives the average 
weekly rates for 15 skilled trades in the large cities 
and in smaller cities and towns in the United Kingdom and the 
United States, respectively. These averages are made up from 141 
quotations of wage rates in the United States, and 471 quotations 
in the United Kingdom. They show the average weekly rate of 
wages paid in 15 skilled trades in the great cities of the United 
Kingdom at $10.12 (42 shillings) ; in the great cities of the 
United States, $18.25 (75 shillings) ; in other cities and towns of 
the United Kingdom, $8.76 (36 shillings) ; and in the United 
States, $16.88 (69 s., 4 d.) In the large cities the rate of wages 
for occupations and trades similar to those in England is 80 per 
cent higher in the United States than in the United Kingdom, 
while in the smaller cities and towns the average was in the 
United States 93 per cent, higher than in the United Kingdom. 

COLD FACTS ABOUT THE COST OF LIVING. 

In reply to this stubborn fact that wages of labor in the 
United States are greatly in excess of those in free-trade England, 
the advocates of free trade have asserted that the cost of living 
in the United States is so much higher that no real advantage 
accrues to the American workman as compared with that of his 
fellow workman in free-trade England. This claim, however, can 
no longer be made in the face of statements repeatedly made in 
the report of the Moseley Labor Commission of Great Britain, 
which visited the United States in 1902. This Commission, headed 
by Mr. Albert Moseley, a distinguished manufacturer and phi- 
lanthropist of England, was composed of officers of the labor unions 
of that country. They visited the various manufacturing cities 
and establishments of the United States while in this country, 
which included about two months of 1902, and on their return each 
member of the Commission was required to submit a detailed 
report, accompanied by explicit statements in answer to certain 
questions which had been prepared by the head of the Commission. 
Among these questions were certain which related to the relative 
cost of living in the United States and in England, the relative 
wages, and whether or not the industrious, careful workingman 
could accumulate more money as the result of his labor in the 
United States than in Great Britain. Practically every one of the 
members of the Commission replied that the cost of living in the 
United States, aside from clothing and rent, was no greater than 
that of England, and that beyond question a workingman in the 
United States could save more money from his earnings than one 
engaged in a similar occupation in England. On this subject Mr. 
Moseley himself, whose conclusions were determined not alone 
by his own observations but through conferences with the prac- 
tical men who accompanied him — officers of the labor unions of* 
his own country — said: "That the American workman earns 
higher wages is beyond question. As a consequence the 
average married man owns the house he lives in, which gives 
him not only a stake in the country but saves payment of rent, 
enabling him to either increase his savings or to purchase other 
comforts. Food is as cheap, if not cheaper, in th*e United States 
as in England, whilst general necessaries may, I think, be put 
on the same level. The American workman is infinitely better 
paid, therefore, better housed and fed." In a letter to the Lon- 
don Times, just after his return, Mr. Moseley said : "The tariff 
question in the United States is absolutely a closed book. * * * 
There is a disposition in some sections of the community (al- 
though even these are not very large) to make a revision of the 
tariff by reducing the duty on certain articles ; but nobody dreams 
for a single instant that such reduction should be sufficiently 
large to allow the foreigner to come in and compete with them, 
lowering the standard of wages and injuring industry. The work- 
ingman in the United States is quite sufficiently alive to his own 
interests to keep this matter always before him and no Prexi- 



36 TUB TAMPS" 

dential candidate would have the smallest chance of election if he 
proposed to attempt anything in the way of tariff reform likely 
to h>i<( r the standard of living and affect the wage-earning power 
of the American workman" See letter on page 50. 

The l'.ritish Blue Book, entitled "Memoranda of Statistical 
Tables; etc., of the Board of Trade with Reference to British and 
Foreign Trade and Industrial Conditions," in a table prepared with 
the purpose of showing industrial conditions in the United King- 
dom, United States, and other countries, gives the current rates 
of wages in the great cities for a few of the leading trades in 
the United States and United Kingdom, respectively, as follows: 
Carpenters, United Kingdom, $10.05, United States, $24.00; com- 
positors, United Kingdom, $9.65, United States, $19.25; fitters, 
United Kingdom, $9.65, United States, $15.20. 

The London Telegraph, discussing these figures of wages and 
cost of living in the two countries, puts the average weekly in- 
come per family of approximately equal earnings relatively to the 
standard of wages in the United Kingdom and the United States 
as follows: In the United Kingdom $7.83, in the United States 
$11.30; the total expenditure, including rent and clothing, in the 
United Kingdom $7.56, in the United States $10.50; and the 
weekly surplus, in the United Kingdom 27 cents ; and in the United 
States 80 cents — the surplus of earnings over necessary expendi- 
tures therefore being three times as great in the United States 
as for like occupations in the United Kingdom. The above state- 
ments, from British authority, that American workingmen can 
save more from their earnings than can those in free-trade Eng- 
land is fully sustained by the savings banks statistics of the two 
countries, which show that in the latest years for which figures 
are available the deposits in savings banks in the United Kingdom 
amounted to 959 million dollars, or $22.86 per capita, and in the 
United States to 2,935 millions, or $36.52 per capita. 

A further indication of the relative effect of protection or 
low tariff upon the actual savings of the workingmen as evi- 
denced by savings banks deposits is found in the fact that savings 
banks deposits in the United States during the period of threatened 
or actual low tariff (1893-97), increased but 154 million dollars, or 
but 9 per cent ; while from 1897 to 1903, under protection, the in- 
crease was 996 million dollars, or 51 per cent. (For savings banks 
tables see page 107. ) 

Tin Plate in the United States. 

An illustration of the advantage to labor which comes through 
the establishment and maintenance of protection to domestic in- 
dustries is found in the history of tin-plate manufacturing in the 
United States. In 1890 there were no tin-plate factories in the 
United States. The McKinley tariff act placed a heavy duty on 
tin plate, with the distinct purpose of creating a tin-plate in- 
dustry. The result has been the creation of tin-plate establish- 
ments which in 1900 employed 15,552 wage earners and paid them 
salaries and wages amounting to $11,106,078 in that year. While 
the figures of men employed and wages paid are only available for 
the census year 1900, the figures of tin-plate production are 
available for each year from that following the passage of the 
McKinley act down to the present time. A comparison of these 
figures of production year by year with those of the year 1900, 
in which the wages paid amounted to $11,106,078, fully justifies 
the assertion that the wages paid to American workmen in the 
tin-plate factories of the United States since the enactment of the 
McKinley law amount to $100,000,000, while their consumption of 
material for manufacturing has aggregated 200 millions. Mean- 
while the cost of tin plate to the consumer in the United States 
has been greatly reduced, despite the maintenance of the high 
tariff. The average price paid for tin plates in the New York 
markets in 1890 was $5.15 per box of 100 pounds, while in April, 
1904, the price in the same market was but $3.65. Thus, as a net 
result of the protective tariff on tin plate a market has been made 
for 200 million dollars' worth of domestic products, the workingmen 
of the country have been paid 100 millions in wages and the cost 
of tin plate to the consumer has been reduced 29 per cent. See 
detailed discussion of tin plate industry, page 84. 



THE TABIFB^i 87 

Are the Rich Growing Richer and the Poor Poorer? 

The frequent assertion that the protective tariff is especially 
in the interests of the manufacturers and capitalists, and that 
under it "the rich grow richer and the poor poorer" may be an- 
swered in a word by some of the figures which have already been 
quoted. While it is doubtless a fact that the manufacturers and 
capitalists are prosperous, it is equally true that the workingmen 
are prosperous and that the share of labor in the general pros- 
perity of the country is steadily increasing. No more accurate 
evidence of the prosperity of the workingman can be found than 
the figures of deposits in savings banks and industrial life in- 
surance. The statistics of deposits in savings banks show that 
the total deposits in 1880 were 819 million dollars ; in 1890, 1,525 
millions, and in 1903, 2,035 millions. Thus, in 1903, the deposits 
in savings banks are over SV 2 times as much as in 1880 and nearly 
twice as much as in 1890. Industrial life insurance policies in 
force in the United States amounted in 1880 to 20 million dollars 
value ; and in 1890, to 429 millions ; and in 1902, to 1,806 millions. 
Thus the amount of industrial insurance outstanding in 1902 was 
90 times as much as in 1880, and over four times as much as in 
1890. Now let us compare these savings of the workingmen — 
this growth in their accumulated wealth — with the general growth 
of wealth in the United States. The census puts the wealth of the 
United States in 1880 at 42 billion dollars ; in 1890, at 65 billions : 
and experts estimate it at the present time as being fully 100 
billions, the total for 1904 being, therefore, about 2% times as 
great as in 1880, and 50 per cent, in excess of that of 1890. De- 
posits in savings banks, as already shown, are today Sy 2 times 
as much as in 1880 and nearly twice as much as in 1890; and 
the value of industrial life insurance policies in force at the 
present time is 90 times as much as in 1880, and four times as 
much as in 1890. This seems to justify the conclusion that the 
accumulations of the masses, the patrons of savings banks and in- 
dustrial life insurance associations, are proportionately much 
more rapid than the general growth of wealth, and that they are, 
therefore, steadily increasing their share in the general prosperity 
and the general accumulations of wealth. 

Growth of National Wealth Under Protection and Free Trade. 

That national wealth and therefore general prosperity is cre- 
ated more rapidly under protection than under free trade is 
illustrated by a comparison of the figures of wealth in free-trade 
United Kingdom and protected Germany and the United States, 
respectively, in 1870 and 1903. These statements of national 
wealth at the dates named are, in the case of the 
United States, those of our own census, while in the case of 
the United Kingdom and Germany they are based upon careful 
estimates by the most eminent statisticians and economists of the 
world, among the number being Sir Robert Giffen, Yves Guyot, 
Michael Mulhall, and Professor Soetbeer. They show that from 
1870 to 1903 the wealth of the United Kingdom, under continuous 
free trade, increased 66 per cent. ; that of Germany, with protec- 
tion during a large part of the period, 95 per cent., and that of the 
United States, with continuous protection except during the period 
1894-97, 233 per cent. Thus, growth in domestic wealth is not only 
the logical result of protection, but has proved the actual result 
in its practical operation. The nation which excludes such pro- 
ducts of other countries as her own people can produce not only 
prevents the sending of wealth out of the country to purchase 
those products but stimulates her own people to produce them 
from the elements which nature supplies — the products of the soil, 
the forest, and the mine. The larger the country, the greater the 
variety of its natural products which can be turned into manu- 
factures, and the larger the population to create a home market, 
the more rapid the increase of wealth. The United States pro- 
duces 43 per cent of the world's pig iron, 50 per cent of its 
copper, 80 per cent, of its cotton, and has 40 per cent, of the 
world's railways and the world's cheapest transportation with 
which to assemble those products, and one-third of the world's 
coal for use in turning them into manufactured form. To ab- 
sorb these products it has practically the exclusive control of a 
home market amounting to 22 billions of dollars per annum, or 



;jk i in; takim'. 

twice the amount of the Imports of all nations of the world aside 
from the United States. The total imports of all nations of the 
world, aside from the United States, according to the Bureau 
of Statistics, are, in round terms, 11 billion dollars per annum; 
while the value of the merchandise consumed in the home market 
in a single year is, according to an estimate of the chief of that 
Bureau, based upon census figure*, 22 billions' of dollars, or 
exactly twice the total annual imports of all nations other 
than the United States. It is/ through the production from natural 
sources — the soil, the forest, and the mine — and its transformation 
by labor into this 22 billion dollars' worth of merchandise an- 
nually consumed in our home markets that this enormous national 
wealth of 100 billion dollars has been created. In 33 years, 
just one-third of a century, there has been added to the wealth 
of the United States 70 billions of dollars, while during that same 
period free-trade United Kingdom has added to her wealth but 
24 billions of dollars. 

The following table shows the wealth of the United Kingdom. 
Germany, and in the United States in 1870 and 1903, as estimated 
by leading statisticians and economists of the world, and the per- 
centage of increase from 1870 to 1903: 



Countries. 


National Wealth 
. (in billions of dollars.) 


Percentage of 




1870. 


1903. 




United Kingdom 


36 
21 
30 


60 
41 
100 


66.7 
95.2 


United States 


233.8 







In savings bank deposits alone, which illustrate the pros- 
perity of the working people, the increase in the United Kingdom 
was from 265 million dollars in 1870 to 959 millions in 1903 ; an 
increase of 694 million dollars ; in the United States the increase 
was from 550 million dollars in 1870 to 2,935 millions in 1903, 
an increase of 2,385 millions. The increase in savings bank de- 
posits from 1870 to 1903 was more than three times as great in 
the United States as in the United Kingdom. 

Relative Growth of Manufactures Under Protection and Free Trade. 

The fact that prosperity of the manufacturer insures prosperity 
of all other classes, as indicated by the figures already given 
showing the great contributions of the manufacturing industries 
to all other classes of occupations, justifies an inquiry as to the 
relative growth of manufacturing under protection and free trade. 
The two marked examples of protection are the United States and 
Germany, and the one marked example of free trade is the United 
Kingdom. That distinguished English statistician, the late Michael 
G. Mulhall, shortly before his death made a careful analysis and 
comparison of the manufacturing industries of these three coun- 
tries, at certain periods sufficiently distant to determine the rela- 
tive growth of the manufacturing industries in those countries. 
He found that the value of the manufactures produced in free- 
trade United Kingdom was, in 1860, 2,808 million dollars, and in 
1894, 4,263 millions, having thus increased during that period 1,455 
million dollars, or but 51 per cent. In Germany, which adopted 
protection in 1879, and was thus a protection country during about 
half of the period covered by these figures, the value of manufac- 
tures grew from 1,995 million dollars in 1860 to 3,557 millions in 
1894, an increase of 1,562 millions, or 78 per cent. In the United 
States, which adopted protection in 1861 and was a protection 
country during all of the period covered by Mr. Mulhall's figures, 
the value of manufactures grew from 1,907 million dollars in 1860 
to 9,498 millions in 1894, an increase of 7,591 millions, or 396 per 
cent. To sum up in a single sentence, this study of the relative 
growth of manufactures, it may be said that in the period from 
1860 to 1894 free-trade England increased her manufactures 1,455 
million dollars ; Germany, which had protection during about half 
of that period, increased her manufactures 1,562 millions ; and the 
United States, which had protection during all of that period, in- 
creased her manufactures 7,591 millions; while the percentage of 



THE TARIFF. 39 

growth in the period from 1860 to 1894 was, for the United King- 
dom, 51 per cent; Germany, ?8 per cent, and the United States, 
396 per cent 

PIG IBON AND COAL. 

Some details of the growth of manufacturing industries may 
be worthy of a moment's consideration. Pig iron is generally con- 
sidered the best barometer of manufacturing and industrial activ- 
ity and prosperity. Taking again the three countries already 
named, free-trade England, protection Germany, and the United 
States, the production of pig iron in the United Kingdom grew 
from 3,830,000 tons in I860 to 8,680,000 tons in 1902, an increase of 
5,850,000 tons, or 153 per cent. ; Germany's production of pig iron 
grew from 530,000 tons in 1860 to 8,393,000 tons in 1902, an in- 
crease of 1,484 per cent ; and that of the United States grew from 
820,000 tons in 1860 to 17,821,000 tons in 1902, or 2,073 per cent. 

Coal production and consumption is another evidence of manu- N 
facturing and business activity and prosperity. In this, as well as 
in iron and manufactures generally, the two protection countries — 
Germany and the United States — show a much more rapid in- 
crease than the United Kingdom. The coal consumption of the 
United Kingdom in 1875 was 114 million tons, and in 1902 166 
million tons, an increase of 52 million tons, or 45.7 per cent. The 
coal consumption of Germany in 1875 was 41% million tons, and 
in 1902 149 million tons, am increase of 101 million tons, or 212 
per cent. The coal consumption of the United States in 1875 was 
47 million tons, and in 1902 266 million tons, an increase of 219 
million tons, or 470 per cent. Attention is especially called to the 
fact that the figures here quoted are those of consumption, not of 
production. In the case of the United Kingdom production shows 
a much greater gain than that of consumption, since that country 
is a large exporter of coal, but even the figures of production do 
not compare in rapidity of growth with those of protected Germany 
or the United States. Coal production in the United Kingdom 
grew from 80 million tons in 1860 to 227 .million tons in 1902 ; that 
of Germany grew from 17 million tons in 1860 to 151 million tons 
in 1902 ; and that of the United States from 15 million tons in 1860 
to 269 million tons in 1902. 

The Fight Against Free Trade in England. 

One of the most striking evidences of the relative effects of 
protection and free trade upon the manufacturing industry is found 
in the figures now being presented in England as arguments in 
favor of the abandonment of free trade and the adoption of pro- 
tection. Those arguments are based upon the statement that ex^ 
ports of manufactures from the protected countries have grown 
more rapidly than those from free-trade England, while imports 
of manufactures into free-trade England have increased much 
more rapidly than those into the protected countries. The figures 
quoted in support of this assertion are from an official publication 
of the British Government, a publication especially prepared for 
serious consideration in the proposition now before the English 
people, of a return to protection in order to strengthen the home 
manufacturing industry and to prevent its destruction by the in- 
troduction of manufactures from the protected countries of the 
world. These official statements issued by the British Govern- 
ment show that exports of manufactures from free-trade United 
Kingdom increased 8* per cent, from 1882 to 1902 ; those from pro- 
tected Germany 64 per cent., and those from protected United 
States 200 per cent. Equally striking is the fact that the United 
Kingdom, although a great manufacturing nation, finds her own 
markets being more and more invaded each year by the manufac- 
tures from protection countries, the importations of manufactures 
from the United States into the United Kingdom having grown 
from 10 million pounds sterling in 1890 to 21 millions in 1902; 
those from Germany, from 9 millions in 1890 to 16 millions in 
1902 ; those from Belgium, from 12 millions in 1890 to 20 millions 
in 1902; those from France, from 25 million pounds sterling in 
1890 to 31 millions in 1902. Meantime the exports of manufac- 
tures from the United Kingdom to the principal protected coun- 
tries—United States, Germany. Belgium, Netherlands, France. 
Russia, and Italy— fell from 83% million pounds sterling in 1890 



40 



THE TARIFF. 



to 70 millions in 1902, while to other countries and colonies they 
increased from 145 million pounds sU'Hing in 1890 to 157 millions 
in 1902. Thus to the principal protected countries England's ex- 
ports of manufacfures decreased V.\y 2 million pounds sterling from 
1890 to 1902, and to the nonprotected countries they increased 12 
million pounds sterling. Meantime her own imports of manufac- 
tures, unobstructed by protective tariffs, increased from 98 million 
pounds sterling in 1890 to 148 millions in 1902. To put it in a 
single sentence, free-trade England's exports of manufactures to 
protected countries fell off 13% million pounds sterling (65 million 
dollars) from 1890 to 1902, and those to other countries of the 
world increased 12 millions sterling (58 {pillion dollars), while in 
th« absence of protection her own imports of manufactured and 
partly manufactured goods increased 50 million pounds sterling 
(250 million dollars). Thus the principal protected countries of 
the world are now excluding from their markets 65 million dollars' 
* worth of manufactures which they formerly took from the United 
Kingdom and annually paying this sum to the workmen and man- 
ufacturers within their own borders, while free-trade England has 
during the same time, through the absence of a tariff, admitted to 
competition with her workmen the labor of other countries in the 
form of the 250 million dollars' worth of manufactured and partly 
manufactured goods which she is now importing in excess of that 
imported in 1890. It is because of this disaster to the labor and 
manufacturing interests of the United Kingdom, the loss of the 
home market as well as of the market in protected countries, that 
leading statesmen of that country are now openly and earnestly 
advocating a return to the protective system which all other lead- 
ing nations of the world have now adopted. 



IMPORTS AND EXPORTS OF MANUFACTURES BY THE UNITED KINGDOM. 

The following table presents the imports and exports of the 
United Kingdom by five-year periods, taking the annual average 
for each period from 1864 to 1902, the share which manufactures 
formed of the imports and exports, respectively, being shown. It 
will be seen that the percentage which manufactures form of im- 
ports grew from 14.9 per cent, for the period 1859-63 to 27.8 per 
cent, for the period 1899-1902, and that the share which manufac- 
tures form of exports fell from 91 per cent, in 1859-63 to 81.6 per 
cent in the four-year period, 1899-1902. 

Imports and Exports of the United Kingdom (merchandise only) 
Compared with the Imports and Exports of Manufactured or 
Partly Manufactured Goods, the Figures Stated Being in Each 
Case the Annual Average for the Five-Year Period Named. 

[From the British Blue Book.] 





Total imports of— 


Proportion 


Total exports of— 


Proportion of 


Annual 






of 






manufactured 
exports to to- 
tal exports. 


average 
for— 


Merchan- 


Manu- 


manufactures 
to total 


Merchan- 


Manu- 




dise. 


factures. 


imports. 


dise. 


factures. 




Million £. 


Million £. 




Million £. 


Million £. 




1859-63 


216.2 


32.6 


14.9 


132.4 


120.5 


91.0 


1864-68 


282.2 


46.3 


16.4 


175.0 


161.5 


92.3 


1869-73 


331.0 


58,6 


17.7 


224.8 


204.2 


90.8 


1874-78 


376.4 


75.4 


20.0 


211.2 


• 189.3 


89.6 


1879-83 


402.2 


80.3 


20.0 


226.2 


201.1 


88.9 


1884-88 


372.2 


84.6 


22.7 


223.0 


196.9 


88.3 


1889-93 


422.4 


98.7 


23.3 


240.8 


208.8 


86.7 


1894-98 


437.8 


115.1 


26.2 


229.8 


197.0 


85.7 


1899-02 


514.5 


143.1 


27.8 


271.8 


221.8 


81.6 / 



The falling off in England's exports of manufactures occurs 
especially in her trade with the protected countrtes, as is illus- 
trated by the following table from the British Blue Boole showing 
the exports of British manufactured or partly manufactured goods 
to the principal protected foreign countries. It will be seen that 
exports of manufactures to the protected countries fell from an 
annual average of 101 million pounds sterling for the period 
1870-74 to an average of 75 millions for the period 1900-1902. 



THE TABIFF. » 41 

Total Exports of British Manufactured or Partly Manufactured 
Goods to the Principal Protected Foreign Countries. 

Average annual amount. 
Period. Pounds sterling. 

1870-74 101,238,000 

1875-79 75,979,000 

1880-84 84,922,000 

1885-89 77,300,000 

1890-94 77,075,000 

1895-99 74,100,000 

1900-02 75,464,000 

EXPOBTS AND IMPORTS OF MANUFACTURES, UNITED STATES AND 
UNITED KINGDOM. 

The table which follows, from the British Blue Book, shows 
the exportation of manufactures from free-trade United Kingdom 
and protected United States, respectively, at quinquennial periods 
from 1860 to 1900, and in 1902, stated in millions of pounds sterling 
for the United Kingdom and in millions of dollars for the United 
States. It will be seen that exports of manufactures from the 
United Kingdom increased from 124.9 million pounds sterling in 
1860 to 227.6 millions in 1902, having thus less than doubled, 
while those from the United States increased from 40.3 million dol- 
lars in 1860 to 403.6 millions in 1902, being thus ten times as great 
in 1902 as in 1860. 

Exportation of manufactures from United Kingdom and United 

States, respectively, at quinquennial years, 1860 to 1902. 

[From official statistics of the respective governments ] 

From the United From the United 
Kingdom. States. 

Year. Millions sterling. Millions dollars. 

1860 124.9 40.3 

1865 153.1 59.0 

1870 182.4 68.2 

1875 201.2 92.6 

1880 198.2 102.8 

1885 188.1 147.1 

' 1890 228.4 151.1 

1895 195.0 183.6 

1900 224.7 433.8 

1902 227.6 403.6 

The table which follows, also from the British Blue Book, 
shows the importation of manufactures into free-trade United 
Kingdom and protected United States, respectively, at quinquennial 
years from 1860 to 1900, and in 1902, stated in millions of pounds 
sterling for the United Kingdom and in millions of dollars for the 
United States. It will be seen that imports of manufactures into 
the United Kingdom grew from 29.3 million pounds sterling in 
1860 to 148.9 millions in 1902, while the importation of manufac- 
tures into the United States only grew from 212.3 million dollars 
in 1860 to 344.8 millions in 1902. Thus the importation of manu- 
factures into free-trade United Kingdom increased 400 per cent 
during the period in question, while those into protected United 
States increased only 64 per cent 

Importation of manufactures into United Kingdom and United 

States, respectively, at quinquennial years, 1860 to 1902. 

[From official statistics of the respective governments.] 

Into the United Tnto the United 
Kingdom. States. 

Tear. Millions sterling. Millions dollars. 

1860 29.3 212.3 

1865 43.5 111.3 

1870 57.0 217.6 

1875 72.7 245.8 

1880 83.2 263.2 

1885 83.4 * 259.0 

1890 98.2 328.8 

1895 107.7 301.9 

1900 145.2 297.8 

1902 ,, 148.9 344.8 



42 I III IAKII I 

Meantime the domestic manufactures of the United Kingdom, 
subjected as they tlms Were t<> the enormous pressure from manu- 
facturers of other countries and the rapid growth in imports of 
foreign manufactures, grew, according to Mr. Mulhall, from 2,808 
million dollars' value in 1860 to 4,263 millions in 1894, while those 
of the United States, under protection, grew, according to this 
same authority, from 1,1)07 millions in I860 to 0,408 millions in 
1804. I Yon i 1860 to 1804, therefore. British manufactures, sub- 
jected to fierce competition with all other parts of the world, in- 
creased but 51 per cent, while those of protected United States 
increased 396 per cent. To sum up in a single sentence the con- 
trast between the prosperity of manufactures in free-trade United 
Kingdom and protected United States, during the period from 1860 
to 1002 imports of manufactures into the United Kingdom in- 
creased 400 per cent., into the United States 64 per cent. ; exports 
of manufactures from the United Kingdom increased 51 per cent, 
those from the United States 000 per cent, while production of 
manufactures in the United Kingdom increased, from 1860 to 1894, 
51 per cent, and in the United States 306 per cent. 

Importation of Raw Material for Manufacturing; Under the Wilson 
and Dingley Lawn, Respectively. 

One point worthy of special attention in a comparison of the 
work of the Wilson low tariff and the Dingley protective tariff 
acts is that the importation of raw material for use in manufac- 
turing has been very much greater under the Dingley than it was 
under the Wilson act. "Free raw materials" was the Democratic 
cry during their campaign and during the preparation of the 
tariff act; yet the demoralization of the home market which re- 
sulted from low tariff rates on manufactured articles so reduced 
the demand upon the manufacturers for finished goods that they 
had little occasion to use the free raw materials which the Wilson 
act gave them. The Dingley act also placed a very large propor- 
tion of the raw materials on the free list, levying, however, a duty 
on certain articles which come in competition' with those produced 
at home, especially wool and hides ; but in no case was this suffi- 
cient to prove embarrassing to the manufacturers, while the do- 
mestic industry was meantime stimulated. The Statistical Ab- 
stract of the United States shows that the value of articles in a 
crude condition which enter into the various processes of domestic 
industry imported in the years 1805, 1806 and 1807, in which the 
Wilson low tariff was in operation, aggregated $506,601,306, or an 
average of 100 millions per annum ; while the imports of this class 
of articles in the fiscal years 1001, 1002, and 1003 aggregated 
$082,842,401, or an average of 328 millions per annum. 

Thus the net result of the application of the two principles of 
free raw materials and low duties on manufactured articles on 
the part of the Democratic measure, and free raw materials and 
protective duties on manufactured goods under the Republican 
measure, is shown in the fact that the importation of raw material 
for use in manufacturing during the three years in which the 
Wilson law was in operation averaged 100 million dollars per 
annum, while in the last three years under the Dingley law the 
importation of raw material for use in manufacturing averaged 
328 million dollars per annum. Despite the assertion of the Dem- 
ocrats that they were going to give to the manufacturers of the 
country free raw material, the disadvantages to the business com- 
munity of their low tariff rates which they coupled with it were 
so great that the manufacturers had little use for the free raw 
materials ; while under the protective measure which gave the 
manufacturers free raw materials in most of their required arti- 
cles and an enormous demand in the home market by reason of the 
protection to manufactures, the importation of raw material under 
the Dingley law in the last three years has been 65 per cent, in 
excess of that under the Wilson law in a like number of years. 

Under the Wilson law, with all of its boasted "free raw ma- 
terials" for the manufacturers of the country, articles in a crude 
condition for use in manufacturing averaged but 26 per cent, of the 
total imports; while under the Dingley law articles in a crude 
condition for use in manufacturing formed 31.8 per cent, of the 



THE TARIFF. 43 

total imports in 1899 ; in 1901, 33V 2 per cent. ; in 1902, 36y 2 per 
cent, and in 1903, 38 per cent, of the total imports. This justifies 
the above assertion that the low tariff rates on manufactures 
which accompanied the free raw material of the Wilson law de- 
stroyed the home demand for those raw materials, while the pro- 
tective duty on' manufactures under the Dingley law so stimulated 
the home demand for manufactures that our manufacturing estab- 
lishments increased their share of the total importations from 26 
per cent, under the Wilson act to 38 per cent, under the Dingley 
act. 

A table on page 129 shows the total value of "articles in a crude 
condition which enter into the various processes of domestic in- 
dustry" imported and the percentage which they formed of the 
total imports in 1895, 1896, and 1897 under the Wilson act, and in 
1899, 1900, 1901, 1902, and 1903 under the Dingley act : 

Does Protection Cause an Increase of Prices in the Home Market? 

Experiences in the United States do not justify the assertion 
made by the free traders that a protective tariff results in an ad- 
vance of prices or in high prices in the country adopting it. Cer- 
tainly this has not been the case in the United States. With an 
area equal to that of all Europe, and producing practically all 
articles other than tropical which are required for use in manu- 
facturing and for food, with a population of 80 millions, with 
nearly a half million separate and competing manufacturing estab- 
lishments, with perfect freedom of interchange between all 
parts of the community in-which these manufacturing estab- 
lishments are located, and with the cheapest transportation facili- 
ties which the world affords, the competition among our own 
producers is an absolute assurance against excessive prices or 
against possible combinations by which artificial prices can be 
maintained. The census of 1900 shows the number of manufac- 
turing establishments whose product exceeds in each case $500 per 
annum. It gives the number as 296,440, and of those having a 
product of less than $500 each, 127,419, and these figures do not 
include the hand trades in which the number of establishments is 
given at 215,814. That natural competition ' among such a large 
number of producers, located with especial reference to proximity 
to materials and power, or markets, or both, should produce the 
keenest competition and consequently the lowest possible prices 
consistent with a fair rate of profit is apparent. That it does so 
happen is evidenced by the fact that the price of tin plate, as 
above indicated, has fallen from $5.15 per box of 100 pounds in 
1890, the year of the enactment of the McKinley law which placed 
a high rate of duty on that article, to $3.65 in the same market 
April 29, 1904. True there was a time during that period when 
prices of tin plate returned to a figure nearly as high as that of 
1890, but this was due solely to a great increase in the price of 
the material used in its manufacture and in the price of labor. 
During that period of high prices pig tin advanced 174 per cent, 
above its lowest record price, and steel slabs, the material from 
which the plates are made, advanced 193 per cent above its low- 
record prices, while tin plate and Bessemer pig iron advanced 174 
per cent above their low-price record, and steel tank plate ad- 
vanced 161 per cent, above its low record. In all of these cases 
the advance in prices of the material was greater than that of the 
finished product, while today with the reducing prices in the raw 
material tin plate has again fallen to $3.65 per box, or 30 per cent, 
below the price in 1890, the year in which the duty was placed 
upon that article. 

THE CASE OF STEEL BAILS. 

Another and even more striking illustration of the reduction in 
home prices of articles upon which a high rate of duty is placed is 
found in the case of steel rails. A duty of $28 per ton was levied 
on steel rails in 1870. In the immediately preceding year the 
quantity of steel rails produced in the United States was only 8,616 
tons. In 1871, the year following that in which the duty was 
placed upon steel rails, the production was 34,152 tons ; by 1881 it 
had reached 1,210,285 tons ; in 1887 it was over two million tons, 
and in 1902 was 2,947,933 tons. In 1870, the year in which the 



44 THE TARIFF. 

duty was placed on steel rails, the currency price of steel rails in 
the United States, as shown by the Statistical Abstract, was 
$106.75 per ton; by 1880 tin- price had fallen to $G7.50 per ton; by 
L890 to $31.75, and in 1903 the average price was .$28 per ton. 
Meantime the duty hud been reduced to $17 per tonkin 1883; $13.44 
per ton hy the McKtnley act of 1890; to $7.84 by the Wilsoh-Gor- 
mau act, and this rate of $7.84 per ton was continued under the 
pingley act 

UUTY ON HIDES DID NOT INCREASE PRICES OF BOOTS AND SHOES. 

Prices of boots and shoes following the imposition of a tariff 
of 15 per cent, ad valorem on hides of cattle imported did not ad- 
vance. Prior to the enactment of the Dingley law hides had been 
for many years free of duty. By that act a duty of 15 per cent 
was levied on raw hides and still remains. That act went into 
effeqt July, 1897. On January 1, 1897, the wholesale price of 
men's grain shoes was shown by tables quoted in Dun's Review, 
an accepted authority, at $1.07% per pair. Instead of advancing, 
the price fell from $1.02% on January 1, 1898, to 97% cents on 
January 1, 1899 ; $1.05% on January 1, 1901, and $1.05 on January 
1, 1902. Men's calf shoes, which were $1.75 per pair at wholesale 
iirices on January 1, 1897; by January 1, 1899, were $1.70, and on 
January 1, 1902, were $1.75. Men's kip boots, which were $1.33 on 
January 1, 1897, before the duty had been placed on hides, were, on 
January 1, 1899, $1.30. Women's grain shoes, which were 87% 
cents per pair at wholesale on January 1, 1897, were on January 
I, 1899, the year after the addition of the rate of duty on leather, 
85 cents per pair. It is true that prj^es of boots and shoes of all 
Trades have advanced slightly since 1902, due to an increase in the 
( rices of raw material and prices of labor ; but the fact that there 
v as a steady fall in the price of practically all grades of shoes dur- 
ing the two years following the enactment of the Dingley law 
which placed a duty on hides, shows that the duty placed on hides 
produced no advance in the prices of boots and shoes. That the 
recent advance in prices is due to causes other than the tariff, 
which has not been changed since 1897, is evidenced not only from 
the general advance in prices of labor, but from the fact that the 
average import price'of hides in 1903 was about 20 per cent higher 
than that of 1899, as shown by the official statements of quantity 
and valuation of hides imported in those years, while in the domes- 
tic markets prices of hides and leather also show a corresponding 
advance as compared with 1899. 

Upon this subject of the effect of a protective duty upon the 
prices of articles produced at home, attention is especially called 
to the fact that a very large proportion of the material required 
by manufacturers for production of the articles which enter into 
the home markets are imported free of duty. The total value of 
material imported for manufacturing in 1903 was 380 million 
dollars. Of this 280 millions came in free of duty and 100 mil- 
lions was dutiable. Upon this the amount of duty collected was 
32 million dollars, which amounts to less than one-fourth of one 
per cent, of the gross value of the manufactures of the United 
States as reported by the census of 1900. Even if we take the 
entire amount of duty collected on finished manufactures and man- 
ufacturers' materials in 1903, we should get a total of but 200 
million dollars, or a fraction over one per cent, of the gross value 
of the domestic manufactures of that year, an advance easily and 
almost certainly more than offset by the reduction naturally result- 
ing from competition among the large number of manufacturers 
producing and seeking a market for this enormous quantity of 
manufactured material. 

Trusts not Able to Fix Prices. 

The assertion that the great combinations are able to fix and 
maintain prices is amply refuted by the experiences of the present 
year. A table recently published by the Bureau of Statistics and 
printed on another page of this work (see index) shows a large 
fall in prices of nearly all classes of articles produced by the great 
manufacturing combinations of the United States during the past 
year, in which the trusts have been supposed to be at the very 
height of their power, while the chief articles in which an increase 
of price is reported are the products of the farm or those imported 
from other countries, m neither of which are the articles in ques- 
ion produced by trusts. 



THE TABIFF. 45 

Coal Prices Advanced After the Coal Tariff was Removed. 

A recent illustration of the fact that prices in the United 
States are not affected by presence or absence of tariff 
duties is found in a study of the results of the removal of 
the duty on coal, made in the closing months of 1902. It will be 
remembered that in view of the then existing coal strike and the 
shortage of coal resulting from that strike, urgent demand was. 
made for a removal of the duty on bituminous coal. In response 
to this demand Congress enacted a law suspending the duty on 
coal for one year beginning with January 1, 1903. * The rate of 
duty on bituminous coal under the then existing law was 67 cents 
per ton, and if the theory that this duty is added to the price in the 
home market were true, the removal of this duty of 67 cents per 
ton should have caused a corresponding fall in the selling price of 
coal in the United States. Instead of this, however, the annual 
average price per ton of. bituminous coal, as shown by the official 
reports of the Bureau of Statistics of the United States Govern- 
ment, was $3.75 in 1903, against $2.50 in 1902, 1901, and 1900, re- 
spectively ; $2.00 in 1899, and $1.60 per ton in 1898. This price of 
$3.75 per ton which existed in 1903 in the absolute absence of any 
tariff duty on coal was higher than that quoted in these official re- 
ports at any time since 1S81. 

Reciprocity. 

Reciprocity is another form of tariff revision which has been 
suggested at various times by various people and by people be- 
longing to various political parties. It was suggested by President 
Arthur, James G. Blaine and William McKinley ; was put into 
operation in the McKinley tariff law ; was destroyed by the Demo- 
cratic Wilson-Gorman tariff law ; and now the Democratic party is 
charging that the Republican,party is not willing to give the coun- 
try "genuine reciprocity." There are two distinct kinds of legis- 
lation which have been designated as reciprocity legislation. 

THE DEMOCRATIC PLAN". 

The first of these was enacted by the Democratic party 
in 1854, taking effect in 1855. It was reciprocity with Can- 
ada, and provided that certain articles, the growth or pro- 
duce of Canada or the United States, should be admitted into 
each country, respectively, free of duty. These were articles 
Of common production in the two countries, and included 
grain, flour, animals of all kinds, fresh, smoked, and salted meats, 
cotton, seeds, vegetables, fruits, fish, poultry, eggs, hides, furs, 
stone, slate, butter, cheese, tallow, lard, ores, coal, pitch, turpen- 
tine, ashes, timber, lumber, flax, hemp, tobacco, and rags. These 
were all, with the single exception of cotton, articles of mutual 
production, and Democratic reciprocity simply provided, for free 
trade in these competing articles. Under that treaty, which went 
into effect March 16, 1855, and terminated March 17, 1866, exports 
from the United States to Canada fell from $27,741,808 in the 
fiscal year 1855 to $23,439,115 in the fiscal year 1866, a reduction 
in our exports to Canada of over 4 million dollars during this 
period of Democratic reciprocity, while imports into the United 
States from Canada increased from $15,118,289 in 1855 to $48,- 
133,599 in 1866, an increase of 33 million dollars. In our trade 
with all other countries during that same period our imports in- 
creased 60 per cent, while those from Canada were increasing 220 
per cent., and our exports to all other countries increased 70 per 
cent while those to Canada under this reciprocity were decreasing 
15 per cent. It was simply free trade in articles of common 
production and with no oarrier to protect the domestic pro- 
ducer — the result being a much greater increase in our imports 
from Canada than in those from other countries, and a decrease 
of exports to that country, while to other countries exports were 
increasing. 

THE REPUBLICAN PLAN. 

A later form of reciprocity with which the country has had ex- 
perience is illustrated by the plan formulated in the McKinley tariff 
law and expressed by William McKinley in his much-quoted speech 
at Buffalo, quoted in full on page 446, in which he said : "By sensi- 
ble trade arrangements which will not interrupt our home produc- 
tion we shall extend the outlets for our increasing surplus. * * * 



46 THE TABIFF. 

We should take from our customers such of their products as we 
can use without harm to our industries and labor. * * * If 
perchance some of our tariffs are no longer needed for revenue 
or to encourage and protect our industries at home, why should 
they not be employed to extend and promote our markets abroad?" 
To purchase from our neighbors "'such of their products as 
we can use ivithout harm to our industries and labor;" in other 
words such of their products as are not produced by our own 
labor and obtain in exchange markets for the class <>l* merchandise 
which we desire to sell, and which the countries in question re- 
quire for their own use, differs materially from the reciprocity 
of 1855-56 which was merely free trade in articles of mutual 
production, articles which when imported compete with the home 
producer. The chief classes of products which we do not produce 
in. the United States are tropical and subtropical. We import 
about 400 million dollars' worth of tropical and subtropical prod- 
ucts every year more than a million dollars' worth for every day 
in the year, including Sundays and holidays. These articles we 
do not produce in the United States in sufficient quantities for 
home requirements. They include rubber, hemp, sisal, jute, 
raw silk, Egyptian cotton, and other articles used in manufactur- 
ing, and coffee, cocoa, tea, spices, olives, bananas, and sugar, used 
as food and drink. These classes of articles are of the class 
which "we can use without harm to our industries and labor." 
Sugar is the only article in this list produced in the United States, 
and at the present tiine^ the home production of sugar is only suffi- 
cient to supply about one-fifth of the total home consumption. The 
countries which produce these tropical and subtropical articles are 
not manufacturing countries, nor are they large producers of those 
great staples of food — flour, wheat, corn, and meats. As a conse- 
quence, they require the very classes of articles which the people 
of the United States have to sell. 

TREATIES UNDER THE M'KINLEY LAW. 

Under the McKinley tariff law reciprocity treaties were 
made by President Harrison with the governments of 
Brazil, British Guiana, Salvador, Nicaragua, Honduras, Guate- 
mala, Santo Domingo, and the countries governing the British 
West Indies and Porto Rico and Cuba. . These treaties provided 
for a reduction of duties on foodstuffs and manufactures from the 
United States entering the countries and islands in question, in 
exchange for the free importation of sugar, coffee, tea, and hides 
into the United States, as provided under the general terms of the 
McKinley act. The result of those treaties with this group of trop- 
ical countries, producing the class of articles which the United 
States requires and does not produce in sufficient quan- 
tities at home, was that our exports to those countries 
and islands increased 26 per cent and our imports from 
them increased 28 per cent between 1890, the year 
of the enactment of the McKinley law, and 1894, the year in which 
it was repealed by a Democratic Congress and a Democratic Presi- 
dent, and reciprocity thus destroyed. During that same period our 
exports to all other countries than those above named increased 
3 per cent, and our imports from them decreased 27 per cent. 

THE HAWAIIAN TREATY. 

Another example of reciprocity, that with countries pro- 
ducing the class of articles which we require and importing the 
class which we produce and desire to export, was the reciprocity 
treaty with the Hawaiian Islands, That treaty went into effect 
September 9, 1876, and terminated April 30, 1900. During that 
period of the existence of that agreement, our ex- 
ports to the Hawaiian Islands grew from $779,257 in the 
fiscal year 1876 to $13,509,148 in the fiscal year 1900, while im- 
ports f-'oni the Hawaiian Islands of noncompeting articles de- 
manded! by our markets — tropical products — increased from $1,227.- 
191 in 1876 to $20,707,903 in 1900. Thus by taking from this trop- 
ical country — Hawaii — its production of articles which we must 
import from some part of the world, we built up in the Hawaiian 
Islands a market for our merchandise seventeen times as large as 
in 1876, the year in which the reciprocity agreement was made; 
while in the brief period in which reciprocity with the Tropics ex- 



THE TAK1KI . 4-7 

isted under the McKinley tariff law, our market in the countries 
in question was enlarged 26 per cent. 

It will be seen from these' illustrations, that the policy of re- 
ciprocity, as a part of the policy of protection, can be most largely 
extended in the direction of tropical countries, for their benefit 
as well as ours, but under the policy as declared and understood 
by the Republican party it can be extended to any country where 
mutual exchanges can be made "without harm" to our productions 
at home. Thus a reciprocity treaty with Canada if properly 
framed might be as desirable as one in different terms relating 
to a tropical country. On this question the Republican platform 
of 1904 says, "We favor liberal trade arrangements with Canada 
and with peoples of other countries where they can be entered 
into with benefit to American agriculture, manufactures, mining, 
or commerce." 

The question of reciprocity with Cuba, already provided for, 
and which gives great promise of usefulness to this country and 
Cuba, is treated under the chapter relating to Cuba. 

Democratic View of Reciprocity. 

[From the Democratic platform of 1892.] 

Section 4. Trade interchange on the basis of reciprocal ad- 
vantages to the countries participating is a time-honored doctrine 
of the Democratic faith, but we denounce the sham reciprocity 
which juggles with the people's desire for enlarged foreign mar- 
kets and freer exchanges, by pretending to establish closer trade 
relations for a country whose articles of export are almost ex- 
clusively agricultural products, w ith other countries that are also 
agricultural, while erecting a custom-house barrier of prohibitive 
tariff taxes against the richest countries of the world, that stand 
ready to take our entire surplus of products, and to exchange 
therefor commodities which are necessaries and comforts of life 
among our own people. 

[From the Democratic Campaign Book, Congressional Election 

1902.] 

Reciprocity looks like free trade, but tastes like protection. 
It is really a new sugar-coating prepared by the Republican 
tariff doctors for many patients who are refusing to take their 
protection pills straight. 

In practice, reciprocity is worse than protection. 

Ordinarily protection is not quite prohibitory, and, incidentally, 
yields some revenue to the government. Reciprocity cuts off 
much of this revenue without conferring any equivalent benefit 
upon the nation. It does, however, as will be shown, give special 
privileges to a somewhat different class from that which pockets 
most of the benefits of straight protection. . * * * 

In theory, reciprocity, like protection, thinks only of the pro- 
ducer, and never of the consumer. It assumes that the seller is 
the only one benefited by an exchange of products. It does not 
propose to lower our tariff .wall by the fraction of an inch. It 
proposes to punch vent holes in the walls to save it from destruc- 
tion. It will permit certain quantities of certain articles to pass 
through these holes, but never enough to let in all of any one 
product. To do this would benefit consumers and spoil the game 
of the protectionists. * * * Reciprocity cares nothing for the 
consumer and hunts foreign markets with a club. Its stock in 
trade is high tariff, favoritism, discrimination, and retaliaton. 
It threatens to slam' our doors in the face of foreign countries 
which will not open their doors to our products. 

Reciprocity is based upon the same false theories as is pro- 
tection, and, like protection, is a sham and a humbug, and to 
most people has been, and will ever continue to be, a delusion 
and a snare. 

Effect of Tariff Agitation. 

Tariff agitation and threats of reduction of tariff are frequently 
as harmful as tariff reduction, in proportion at least to their dura- 
tion. The uncertainty on the part of the purchaser as to the 
prices at which he can obtain his goods from abroad leads him to 
curtail his orders from the home producer, while in turn the home 
producer is unable to fix prices because of the uncertainty as to 



48 THE TAlti 

the cost of the material which he imports for use in his manufao 
tures, and is also unable to determine to what extent foreign oier 
chandise will compete with that which he produces. The results 
of these conditions are necessarily a check in manufacturing from 
the moment that manufacturers know or hav,e reason to believe 
that a change is to be had in the tariff. This check is immediately 
felt not alone in the reduction of employment hut in the reduction 
in the purchases of material used by the manufacturer, and in a 
reduction of the purchases of food, clothing, and other supplies by 
the employees whose earnings are thus reduced. This in turn is 
felt by the farmers and producers of raw material and foodstuffs, 
and their purchases are in turn curtailed and the sales of the mer 
chant and manufacturer thus reduced. As a result of these come 
reductions in the earnings of transporters whose expenses can not 
be curtailed in proportion to the reduction of their receipts, since 
their trains must be kept running at regular intervals, and with 
this comes disaster to these great interests and to those dependent 
upon them. The immediate and disastrous effects of a threat of 
tariff reduction as a result of the uncertainty in prices and condi-' 
tions which followed the announcement that the tariff policy of 
the United States was to be reversed are shown in the disasters 
which immediately followed the election of a free-trade President 
and Congress in 1892. This election of President Cleveland and of 
a Democratic majority in both branches of Congress occurred in 
November, 1902, and by the beginning of 1903 manufacturers and 
those dependent upon them realized that a radical change in the 
tariff awaited them. As a result, the business failures, which 
amounted in number to 10,304 in 1892, were 15,242 in 1893, and 
their liabilities, which in 1892 were 114 million dollars, were in 
1893 346 millions. Money in circulation fell from 1,601 million 
dollars in 1892 to 1,596 millions in 1893, and the per capita from 
$24.56 in 1892 to $24.03 in 1893. Bank clearings, which were 
60,883 million dollars in 1892, dropped to 58,880 millions in 1893 : 
deposits in savings banks fell from 1,753 million dollars in 1892 to 
1,556 millions in 1893 ; and railroads placed under receiverships 
increased from 10,508 miles in 1892 to 29,340 miles in 1893. 
All of this, b.e it remembered, occurred in the single year, 1893, 
before a line of the free trade legislation had been placed upon 
the statute books,; but during a period when the entire business 
interests of the community were compelled to suspend operations 
largely by reason of the uncertainty as to what the extent of that 
tariff legislation would be. 

Abraham Lincoln, on the Tariff Question. 

Abraham Lincoln had clearly defined views on the tariff ques 
tion. He was a protectionist. He believed that American con- 
sumers should patronize American producers and thus build up 
and develop the great home market, and in so doing assure them- 
selves not only domestic prosperity but lower prices and a 
smaller loss of labor applied in transportation. "A tariff of 
duties on imported goods so adjusted as to protect American in- 
dustry is indispensably necessary to* the American people" was 
the form in which he expressed his sentiments in resolutions 
offered at a Whig meeting at Springfield, 111., March 1, 1843. 

In an address to the people of Illinois issued three days later 
and bearing his name he said: 

"By the tariff system the whole revenue is paid by the con- 
sumers of foreign goods, and those chiefly luxuries and not the 
necessaries of life. By this system the man who contents himself 
to live upon the products of his own country pays nothing at all. 
And surely this country is extensive enough and its products 
abundant enough to answer all the real wants of its people. In 
short, by this system the burden of revenue falls almost entirely 
on the wealthy and luxurious few, while the substantial and labor- 
ing many who live at home and upon home products go entirely 
free." 

In some tariff memoranda written by Mr. Lincoln after his 
election to Congress but before taking his seat in that body in 
1847 he said: 

"I suppose the true effect of duties upon prices to be as fol- 
lows: If a certain duty be levied upon an article which by nature 
can not be produced in this country — as 3 cents a pound upon coffee 
— the effect will be that the consumer will pay 1 cent more per 
pound than before, the producer will take 1 cent less and the 
merchant 1 cent less in his profits; but if a duty amounting to full 



THK T A HI IF. 49 

protection be levied upon an article which can be produced here 
with as little labor as elsewhere — as iron — that article will ulti- 
mately and at no distant day, in consequence of such duty, be sold 
to our people cheaper than before, at least by the amount of the 
cost of carrying- it from abroad." 

In another memorandum on the tariff question, written just 
before talcing his seat in Congress, Mr. Lincoln said: 

"To secure to each laborer the whole product of his labor, or 
as nearly so as possible, is a worthy object of any good govern- 
ment. Will the protective principle advance or retard this object? 
The habits of our whole species fall into three great classes — use- 
ful labor, useless labor, and idleness. It appears to me that the 
labor done in carrying articles to the place of consumption which 
could be produced in sufficient abundance and with as little labor 
at the place of consumption is useless labor. Iron and everything 
.made of iron can be produced in sufficient abundance and with as 
"little labor in the United States as anywhere else in the world; 
therefore all labor done in bringing iron and its fabrics from a 
foreign country to the United States is. a useless labor. The same 
precisely may be said of cotton, wool, and of their fabrics. The 
raw cotton grows in our country, is carried by land and water 
to England, is there spun, wove, dyed, stamped, etc., and then 
carried back again and worn in the very country where it grows, 
and partly by the very persons who grew it. Why should it not 
be spun, wove, etc., in the very neighborhood where it grows and 
is consumed and the carrying thereby dispensed with?" 

Mr. Lincoln's suggestion fifty-seven years ago that the protec- 
tive principle should be applied in the development of our iron 
and cotton industries has been fully justified by subsequent 
events. In that year (1847) the pig iron production of the United 
States amounted to 800,000 tons. By 1870, ten years after the 
election of the first Republican President, pig iron production 
had reached 1,665,000 tons; by 1880 it was over 4,000,000 tons; 
by 1890 over 9,000,000 tons; in 1900 over 13,000,000, and in 1903 
over 18,000,000 tons. Meantime the price had fallen from $30.25 
per ton in 1847, the year in which Mr. Lincoln expressed these 
sentiments, to $15 per ton in 1904; or less than one-half the 
price when he predicted that home manufacture would reduce 
prices. In cotton manufacturing his prediction has been equally 
justified. The cotton mills of the United States in that year took 
1,858,000 bales of domestic cotton for manufacture. Under the 
protective system here advocated by Mr. Lincoln the consump- 
tion has grown to over 4,000,000 bales in 1902, and the price of 
standard prints, -a staple article of cotton manufacture, has 
fallen from 10 cents per yard in 1847 to 5 cents per yard in 1903, 
as shown by official figures of the Bureau of Statistics. 

President Lincoln's views on the tariff were often expressed 
in his quaint but always forceful method. "The tariff question," 
he said to a Pittsburg audience on February 15, 1861, "is as 
durable as the Government itself. It is a question of national 
housekeeping. It is to the Government what replenishing the 
meal tub is to the family. So far there is little difference 
among the people. It is as to whether and how far duties on 
imports shall be adjusted to favor home production in the home 
market that controversy begins. * * * I have long thought 
that it would be to our advantage to produce any necessary arti- 
cle at home which can be made of as good quality and with as 
little labor at home as abroad, at least by the difference of the 
carrying from abroad." 

On another occasion Mr. Lincoln is quoted as saying: 

"I am not posted on the tariff, but I know that if I' give my 
wife twenty dollars to buy a cloak and she buys one made in free- 
trade England, we have the cloak, but England has the twenty 
dollars; while if she buys a cloak made in the protected United 
States, we have the cloak and the twenty dollars." 

British Views of American Protective Tariffs. — Growing 1 Proba- 
bility of Protection in the Last Stronghold of Free Trade. 

That the protective system, as exemplified in the United 
States, is finding favor in the last stronghold of free trade (Eng- 
land) is well known. Mr. Chamberlain, the former secretary of 
state for the colonies, has resigned from the cabinet tx> lead 
the fight in favor of protection, and Premier Balfour has written 
a pamphlet openly advising the abandonment of free trade. Lib- 
eral extracts from the expressions of these and other English 
statesmen and writers are published in the document "Pages 
from the Congressional Record," especially in the speeches of 



H ^ I III I Mill K 

Representatives Dick, MCOleary, and Olmsted. A study of all of 
these speeches and of the others published In this document 
will prove of great value both to speakers and editors, as they 
contain much matter which can not he inserted in a textbook. 

Among the views of representative ECngUshmen on the Ameri- 
can tariff and its results attention is especially called to those 
of the Museley Tariff Commission. This commission, composed of 
officers of the labor unions of the United Kingdom, was brought 
to the United States in 1902 by Mr. Alfred Moseley, a distin 
guished British manufacturer interested in the prosperity of 
English labor as well as English industries. The commission 
visited all of the great manufacturing centers, occupying several 
months in its studies, and on its return to England issued an 
elaborate report. This was made up in part of special reports' 
by each member of the commission upon conditions in Ids par- 
ticular branch of industry, but each member was also required 
to answer certain specific questions regarding x he general con- 
ditions of labor in the United States. These reports and replies 
are a striking testimonial to the protective system of the United 
States. A summarization of them will be found in the speech of 
Representative Olmsted, above alluded to, and should be care- 
fully studied. 

The following is a letter published in the London Times 
by Mr. Moseley, the head of the commission, shortly after his 
return, and it is followed by an extract from his report which 
occupied the opening pages of the general report of the commis- 
sion; also by extracts from a report of the British Iron and Steel 
Commission, which visited the United States in 1902. 

Mr. Alfred Moseley's Letter to the British Public on Condition* in 
the United States and Their Relation to the Protective Tariff. 

To the Editor of the London* Times. 

Sir: I find on my return to England that there is. a vast 
amount of curiosity on the part of the public as to how Mr. Cham- 
berlain's proposals are viewed by the mercantile community on 
the other side of the Atlantic. 

Of course, they realize that a tariff imposed upon our imports 
would not be to their advantage; nevertheless they do not allow 
their judgment to be warped by the consideration of their own 
personal interests, and I found on all sides but one comment, 
amounting practically to "Why has it not been done before? We 
could never see the utility of allowing other nations to dump their 
surplus products on the market and put one's own people out of 
work." This was the opinion of every business man with whom I 
conversed, with the exception only of Mr. Carnegie. 

The subject of our tariff reform movement is as interesting to 
the people of the United States as it is to ourselves, and is continu- 
ally discussed in the newspapers and forms the topic of endless 
debates in their universities and societies. Nowhere have I heard 
it condemned as being impractical. Their authorities on political 
economy, with many of whom I discussed the subject, one and all 
agreed that it is the only course open to England in view of the 
conditions that have arisen since she adopted free trade; amongst 
whom I may name Mr. John H. Gray, professor of economics at 
Northwestern University, Chicago, who expressed wonder that 
there should be any opposition to Mr. Chamberlain's scheme ex- 
cept from "cranks" and people incapable of moving with the times. 
Professor Gray, I may state, is considered in the United States as a 
high authority, and he was chosen two years ago by their Govern- 
ment to come to this country to investigate labor conditions here. 
The results of his inquiries are to be published shortly by Com- 
missioner Carroll D. Wright of the United States Labor Bureau. 

Whilst I was in America I read a report of a speech by Lord 
Goschen, in which he stated that whilst we were about to adopt 
protection the United States was tending entirely in the opposite 
direction, towards the removal of tariffs. No one, of course, doubts 
his sincerity in making this assertion, but it shows how lamentably 
he is out of touch with conditions as they are. The tariff question 
there is absolutely a closed book; all that the people of the States 
ever propose to discuss is whether perhaps they are not taxing 
themselves unnecessarily in certain industries by the high tariff 
that exists, and there is a disposition in some sections of the com- 
munity (although even these are not very large) to make a re- 
vision of the tariff by reducing the duty on certain articles; but 
nobody dreams for a single instant that such reduction should be 
sufficiently large to allow the foreigner to come in and compete 
with them, lowering the standard of wages and injuring industry. 
The workingman of the United States is quite sufficiently alive to 
his own interests to keep this matter always before him, and no 
presidential candidate would have the smallest chance of election 
if he proposed to attempt anything in the way of tariff reform 
likely to lower the standard of living and affect the wage-earning 
power of the American workman. 

Yours, faithfully, A. MOSELEY. 

London, E. C, December 22, 1802. 



THE TARIFF. 51 

UP-TO-DATE METHODS OF PROTECTION. 

Mr. Moseley himself, on tlie opening page of the report, says: 

In my travels round the world, and more particularly in the 
United States, it became abundantly evident to me that as a manu- 
facturing- country America is forging- ahead at a pace hardly real- 
ized by either British employer or workman. I therefore came to 
the conclusion that it would be necessary for the workers them- 
selves to have some interest in these developments, and I decided 
to invite the secretaries of the trades unions representing the prin- 
cipal industries of the United Kingdom to accompany me on a tour 
of investigation of the industrial situation across the Atlantc. * * * 

In my previous trips to America I had been favorably struck 
by the up-to-date methods of protection there, both from a busi- 
ness standpoint and as regards the equipment of their workshops. 
The manufacturers there do not hesitate to put in the very latest 
machinery at whatever cost, and from time to time to sacrifice 
large sums by scrapping the old whenever improvements are 
brought out. Labor-saving machinery is widely used everywhere 
and is encouraged by the unions and welcomed by the men, be- 
cause experience has shown them that in reality machinery is their 
best friend. It saves the workman numerous miseries, raises his 
wages, tends toward a higher standard of living, and, further, 
rather creates work than reduces the number of hands employed. 
In England it has been the rule for generations past that as soon 
as a man earns beyond a certain amount of wages the price for his 
work is cut down, and he, finding that working harder and run- 
ning his machine quicker brings no larger reward, slackens his 
efforts accordingly. 

In the United States the manufacturers rather welcome large 
earnings by the men so long as they themselves can make a profit, 
arguing that each man occupies so much space in the factory, 
which represents so much capital employed, and therefore that the 
greater the production of these men the greater must be the 
manufacturer's profit. * * * The United States has advanced 
by leaps and bounds. She is beginning to feel the beneficial ef- 
fects of the education of her masses and an enormous territory 
teeming with natural resources as yet but meagerly developed. At 
the present time the home market of the United States is so fully 
occupied with its own developments that the export trade has as 
yet been comparatively little thought of; but as time goes on and 
the numerous factories that are being erected all over the country 
come into full bearing, America is bound to become the keenest of 
competitors in the markets of the world. * * * 

How is it that the American manufacturer can afford to pay 
wages 50 per cent, 100 per cent, and even more, in some instances 
both ways, and yet be able to successfully compete in the markets 
of the world? The answer is to be found in small economies which 
escape the ordinary eye. That the American workman earns 
higher wages is beyond question. As a consequence, the average 
married man owns the house he lives in, which not only gives him 
a stake in the country, but saves payment of rent, enabling him 
either to increase his savings or to purchase further comforts. 
Food is as cheap (if not cheaper) in the United States as in England, 
whilst general necessaries may, I think, be put on the same level. 

* * * It is generally admitted that the American workman, in 
consequence of labor-saving machinery and the excellence of the 
factory organization, does not need to put forth any greater effort 
in his work than is the case here, if as much. He is infinitely 
better paid, therefore better housed, fed, clothed, and, moreover, 
is much more sober. 

Under such conditions- he must naturally be more healthy. 

* * * Fuel and raw material are much the same price in tlip 
United States as in Europe, and it therefore can not be claimed 
that she has very much advantage on this; but facilities for trans- 
port, both by rail and water, are undoubtedly better and cheaper. 

* * * In the United States one hears a great deal against 
"trusts" (as they are known, or what we term "large corpora- 
tions"), but personally I am rather inclined to welcome these con- 
cerns, because large organizations that employ capital are best 
able to compete in manufactures on the most economical lines, can 
fearlessly raise wages within given limits, are in position to com- 
bat unhealthy competition, can provide up-to-date machinery ad 
libitum, call erect sanitary and well-ventilated workshops, and 
generally study better the comfort and well-being of the workmen 
than small individual manufacturers struggling against insuffi- 
cient capital and old machinery. It is in the organization of cap- 
tal on the one hand and a thorough organization of labor on the 
other that I believe the solution of industrial problems will be 
found. 

GREAT PROGRESS IN MANUFACTURING IN THE UNITED STATES. 

The report of the Moseley Industrial Commission closes with 
a general statement, entitled "Progress in Manufacture in the 
United States at the End of the Nineteenth Century." It begins 
by calling attention to the fact that manufactures, which formed 
in 1875 but I6Y2 per cent of the exports of domestic merchandise, 
formed in the period 1899-1901 29 x / 2 per cent of the exports of 
domestic merchandise. It also calls attention to the fact that 
the growth of exports of manufactures from the United States 
from 1889 to 19C1 has been much more rapid than the growth 
of manufactures exported from the United Kingdom, and says: 



52 I'm: lAUHK. 

Comparison between detailed headings in the trade accounts 
of the two count lies is probably somewhat unsafe, but some idea 
of the prospect of the United States becoming a greater exporter 
than this country — the United Kingdom — may be gathered by 
noticing that the values of machinery exported as well as that of 
the total exports of iron and steel manufactures, which were 
both, five years ago, less than a quarter of the corresponding 
values in this country, amounted at the end of the century to more 
than half those values. 

* It also calls attention to the fact that the production of pig 
iron grew from 4,000,000 tons, average, in 1884 and 1885, in the 
United States to 13,70&,000 ions in 1889-1900, while that of the 
United Kingdom only .grew from 7,614,000 tons to 9,191,000, and 
that the growth in production of steel in the United States was 
even more rapid. 

It also calls attention to the growth of the tin-plate industry 
in the United States, saying: 

Previous to 1890 the United States produced practically no tin 
plates and sheets, and the industry owes its existence almost 
wholly to the protective tariff placed upon these goods in 1890, 
which became operative on July 1, 1891. The growth of the in- 
dustry since that date has been very remarkable and has resulted 
in this country (the United Kingdom) to a large extent losing its 
best customer. * * * Much of our loss, due to the closing of 
the American markets against us, has been made good by markets 
having been found elsewhere; but, in spite of this, the blow to the 
trade has been very severe. 

In closing the general discussion, the report says : 

Before concluding, it may be as well to suggest, briefly, the 
causes that have contributed to the enormous expansion of manu- 
facturing industries in the United States. This is not the place to 
discuss in detail the causes which may be credited as political. 
That a certain proportion of the growth of the manufacturing in- 
dustries of the United States is attributable to the direct action 
of government, and especially to the operation of the tariff, is ob- 
vious, and, indeed, has been referred to incidentally in discussing 
the growth of tin-plate manufacture in the United States. 

A word, however, may be said as to the causes of growth 
which depend on the natural advantages possessed by the United 
States and the personal characteristics of her citizens. Under the 
first head come the enormous coal resources of the United States, 
coupled with the rich deposits of iron ore. Under the second 
comes a whole group of characteristics, which to a large extent 
evade statistical analysis. There is, first, the readiness of the 
manufacturer to adopt, and of the workman to accede to, the use 
of labor-saving devices. Allied to this is the largeness of scale, 
with its resultant economies, with which manufactures are con- 
ceived and carried on. For further details of this report see speech 
of Representative Olmsted in document "Pages from Congressional 
Record." 

Report of the Commission of the British Iron Trade Association. 

Another tribute to protection is paid by another representa- 
tive commission from England which visited the United States 
in 1902, namely, the commissioners appointed by the British Iron 
Trade Association to inquire into the iron, steel, and allied in- 
dustries of the United States. This commission, which visited 
the great iron manufacturing centers of the United States, pre- 
sented an elaborate report, forming a volume of nearly 600 pages. 
It contains reports on all features of the iron and steel production, 
including the supplies of ore and coal, freights, labor condi- 
tions, hours of work, strenuousness of labor, cost of production, 
organization and administration in industrial affairs, transporta- 
tion systems, the great corporations, and other work in iron and 
steel production, and many other kindred subjects. Throughout 
this elaborate report the writers point to the advantageous condi- 
tions existing in the United States, the higher prices paid for 
labor, the better conditions of the laboring men than those of 
their own country (England), and the wonderful prosperity 
which has come to the iron and steel industry in the United 
States, where, in the words of the secretary of the commission, 
Mr. J. Stephen Jeans, "In no country has protection been adopted 
in such a whole-souled manner. In no other country have the 
shibboleths of free trade been more emphatically held at arm's 
length." 

Commenting upon the remarkable development in the United 
States in this industry, Mr. Jeans says: 

The cost of production of iron and steel is made up of three 
main elements — raw materials, labor, and transportation. No one 
of these matters can properly be dealt with unless in relation to 
the others. Raw materials, however cheap and abundant, are of 



THE TAEIFF. 53 

little value as a basis of industrial prosperity without cheap trans- 
port and labor at a reasonable cost. Similarly, cheap labor is of 
little value without adequate supplies of raw materials of the right 
kind plus a reasonable rate of charge for transport. The inter- 
relation of these three subjects has made it necessary to devote 
much space to all three of them in this report. Labor is perhaps 
the most fundamental of the trio, because in one form or another 
the ultimate cost of all commodities is mainly that of labor. In 
the United States, paradoxical as it may appear, we have to face 
conditions that make at once the dearest and the cheapest labor 
that is probably to be found in any part of the world — dearest with 
respect to nominal remuneration, the cheapest with respect to in- 
dustrial and economic results. 

It is the purpose of the following pages to demonstrate how 
American ironmasters and engineers have been able to so disci- 
pline and apply the labor at their command as to reconcile high 
wages with cheap production in a degree not hitherto attained 
elsewhere. * * * The influence of trades-unionism is not near- 
ly so strong nor so aggressive in the United States as in Great 
Britain. * * * The almost absolute freedom of labor has been 
the chief instrument whereby it has won such conquests in the 
field of industrial economy during the last quarter of a century. 
In all countries industrial processes have been greatly cheapened 
during that period, but in America the cheapening appears to have 
been carried farther than anywhere else. Within that time a 
wire-rod roller has seen his earnings per ton reduced from $2.12 
to 12 cents, and yet he earns larger wages at the lower figure, 
while 5 cents are paid to-day for heating billets to make wire rods 
against 80 cents during the period referred to. * * * Wages, 
in short, are generally so good and the men have their futures so 
much in their own hands that they have every encouragement to 
do the best they can both for their employers and for themselves. 
The human factor and the personal equation appear to count in 
the United States for more than they generally do in Eruope. 
Workmen appear to enjoy a larger measure of independence, based 
on a knowledge of the fact that work is more easy to obtain than 
in older countries, and they are able as a rule to save money and 
are therefore less dependent than when living, as is not unusual in 
Europe, from hand to mouth, and that they are living under a 
political regime which is founded on democratic principles. 

RELATIONS BETWEEN EMPLOYERS AND EMPLOYED. 

Two features of the relations of employers and employed may 
be named as exercising a powerful influence on the amity of their 
connections: First, the encouragement and reward of workmen's 
inventions, and second, the readiness with which workmen of ex- 
ceptional capacity can themselves become employers and capital- 
ists. * * * 

The vast scale of operations is a feature of American works 
that can not be paralleled elsewhere. The total number of hands 
employed at Homestead is over 7,000, and the capacity of output of 
steel something like 2,000,000 tons a year. One individual customer 
takes 1,000 tons a day of this output, and all the other operations 
are on a similarly colossal scale. This fact enables the manage- 
ment to spread the standing charges over a large output in such 
a manner as to bring them down to a percentage of total cost of 
which probably no European works has any experience. * * * 

The commissioners naturally found that the influence of the 
corporation was almost all-pervading in certain districts, and that 
its future policy and its financial issues were regarded from very 
different aspects and with very different ideas by different observ- 
ers. The United States Steel Corporation, in the opinion of the 
majority, has come to stay. As it controlled nearly two-thirds of 
the total iron ore, coke, pig iron, and steel capacities of the United 
States at the time of its organization, it is natural that it should 
be looked to as the leader of all movements of prices and wages, 
and the prominent part which it took in the settlement of the im- 
portant labor dispute of 1901 supplied an evidence, if any were 
needed, that it means to use its power and influence when occasion 
demands that it should do so. At the same time, there is reason 
to believe that its power is not relatively increasing — in other 
words, that the production of iron and steel controlled by inde- 
pendent concerns, or/ likely to be so in the near future, is or will 
be greater than that at the time of the consolidation. 

THE STEEL TRUST. 

It is natural that both here and on the other side of the At- 
lantic the vast influence and the commanding position secured by 
the United States Steel Corporation should have induced a degree 
of apprehension lest smaller plants may be swamped, and both pro- 
duction and price become largely a matter of monopoly. This is 
not. however, the opinion of the best-informed and most far-seeing 
men with whom I have had the opportunity of discussing the situ- 
ation in the United States. That private enterprise in that country 
is not afraid of the steel corporation is made evident by the un- 
precedented activity that is being displayed in the establishment 
of new independent plants while I write. In every part of the 
United States plants are entering the lists to compete against the 
steel corporation, and the capacity of the private plants opposed 
to it to-day is probably considerably greater than it was at the 
time it was founded, although that was only February, 1901. A 
recent writer has accurately noted that small plants well located 
and economically managed are remarkably tenacious of life. It 
has also been observed that the best returns on American capital 
during the period known as the "lean years" were not generally 
those of the largest enterprises, but those of a few smaller firms, 
and those in some cases outside the range of what are known as 
"the cheap centers," 



54 



I III lAKIP'K. 



THE TIN PLATE INDUSTRY AND ITS DEVELOPMENT. 

The British Iron and Steel Commission after its visit to the 
United States in 1902 devotes a chapter of its report to a discus- 
sion of the tin-plate industry in the United States, and hegins hy 
saying: 

The tin-plate industry Is one of the most recent in the United 
States and has been built up on the McKinley tariff of 1890, which 
levied a duty of 2% cents per pound on all tin plate imported into 
the country and practically caused the customs to claim as much 
on imports into the United States as the price of the product at 
works in the principality. 

At the time the McKinley tariff came into force there was 

f (radically no tin plate manufactured in the United States, and the 
mports of that commodity ranged from 300,000 to 400,000 tons a 
year. In the following year the* home production was only 552 
tons, and the imports of British tin plates were' 327,882 tons. Since"* 
then the American production has increased year by year, while 
the American imports have as rapidly declined. In 1900 the total 
American output of tin plates exceeded 400,000 tons, and the im- 
ports had fallen to only 58,000 tons, or about a sixth part of what 
they were in 1890. 

The following table shows the British exports, American im- 
ports, and American output of tin plate for the last thirteen years: 



Year. 


Exports 

from Great 

Britain to all 

countries. 


Imports into 

United States 

of America. 


American 
production. 


1889 


Tons 

430,623 i 

421,797 

448.738 

395,580 

379,233 

354.081 

365,088 

266,955 

271,230 

250,953 

256,629 

273,954 

171,657 


Tons. 
331,311 
329,435 
327,882 
268,472 
253,155 
215.068 
219,545 
119,171 
83.851 
67,222 
58.915 
60,386 


Tons. 


1890 




1891 


552 


1892 


18,803 


1893 

1894 


55.182 
74,260 


1895 


113,666 


1896 


160 362 


1897 


256 598 


1898 


326 915 


1899 


397,767 


1900 


302 665 


1901 









The imports of the past three or four years have been confined 
almost entirely to tin plates, which are reexported in the shape of 
cans containing oil, fruit, fish, etc. By the terms of the Dingley 
law 99 per cent, of the duty originally placed on such tin plate is 
refunded by the Government on its reexport. * * * 

It seems to be pretty certain from the available records that 
whatever "virtual monopoly" of the tin-plate trade the steel cor- 
poration may have possessed when it was founded, or whatever the 
amount of control exercised over the trade at an earlier date by 
the American Tin Plate Company, competitive concerns have in- 
creased largely and rapidly, until the twenty-six tin-plate works 
under the control of the steel corporation are leas than one-half of 
the whole number. While, therefore, the action of that consolida- 
tion can not be regarded as uninfluential in the affairs of the tin- 
plate trade, it is not likely to be all important, as it would have 
been while independent concerns were less numerous. 

The number of completed tin-plate works in the United States 
at the end of 1901 was fifty-five, compared with sixty-nine in April 
of 1898, and the same number at the end of 1895. Hence the num- 
ber of existing works at the end of 1901 was less than that of 
either of the two previous periods. But the amount of enterprise 
being shown at the end of 1901 in adding to the productive capacity 
of American tin-plate plants was greater than at either of those 
previous dates. Mr. Swank's figures show that at the end of 1901 
no fewer than seven new tin-plate works were in course of con- 
struction, against one in April, 1898, and four at the end of 1895. 
Of the new works being built at the end of 1901, three were in 
Pennsylvania, two in West Virginia, one in Ohio, and one in Wis- 
consin, while one other was at that time projected in Illinois. The 
aggregate capacity of the whole of the tin-plate works of the 
United States is not quite known, but it is computed at over 700,000 
tons, which is a good deal in excess of any actual output hitherto 
reached in the United Kingdom. * * * 

In considering the tariff of the United States from the point of 
the influence on British industry, we can not ignore the possible 
example that it has set to -other nations and which in the future 
it may conceivably offer to our own. We need not discuss this 
point at any length. It would be unsatisfactory to attempt to dis- 
cuss it from a purely controversial standpoint. But it is at least 
permissible to point out that not a few leading manufacturers have 
expressed dissatisfaction with a condition of things that enables 
other countries to enter British markets without let or hindrance 
while excluding us from their own, and under which Britain is 
steadily increasing her imports of foreign manufactured goods, 
while leading statesmen have pointed out that this country, having 
by its economic policy given a practical sanction to this system of 
unrestricted Imports, has no equivalent to offer in commercial ne- 
gotiations with other nations. 



THE TARIFF. 55 



THE BRITISH POINT OF VIEW. 

From the British point of view the main interest in and the 
chief effect of the United States tariff takes two forms — that of ex- 
cluding our products from the markets of that country and that of 
underselling' us in our own. As regards the former, the fact is so 
well known that I need not pile up figures to prove it. Suffice it 
to say that our total iron and steel exports to the United States 
are now only about one-fifth of what they were ten years ago, al- 
though even now the tariff does not entirely shut out European 
iron and steel, seeing that pig iron and billets are being imported 
from Europe while I write. * * * 

I may here point out that while Great Britain, according to 
the official records of the United States, took from that country 
an average of more than $500,000,000 worth of merchandise during 
the last four years, the average imports of British produce into the 
United States have not exceeded one-third of that figure, while of 
that one-third from one-half to two-thirds are subject to more or 
less prohibitory duties. This is not a trade relationship which the 
people of this country can regard with perfect equanimity. Ameri- 
cans can hardly be surprised if in Great Britain there is an increas- 
ingly strong impression that in matters of commerce our American 
friends, like the Dutch described by Hudibras, have a habit of "giv- 
ing too little, and asking too much." 

EFFECT OF THE TARIFF ON PRICES. 

The Americans generally dispute the argument that a tariff 
for protection tends to keep up prices to the home consumer, and 
in support of their attitude on this subject they point to the fact 
that the prices of coal, iron, steel, and other commodities are and 
have been materially lower in the United States than in Great 
Britain. This view opens up questions of vast range, which it 
would take much space to handle. The other side of the argument 
obviously is that prices of commodities in the United States have 
declined, not because but in spite of the tariff. * * * 

At the same time it is by no means clear that a high tariff does 
necessarily involve a high range of prices in the protected country 
and in the United States within the last few years prices have 
touched a very low level in spite of the tariff. Take as a case In 
point the statistics of steel rails. When the steel-rail industry 
was begun in the United States, in 1867, the rate of duty on Im- 
ports was 45 per cent, ad valorem. This rate was continued until 
1871, when it was made a specific duty of $28 per ton, which was 
reduced to $17 per ton in 1883, to $13.44 in 1.890, and to $7.84 in 
1894, at which figure it has since been maintained. In spite of 
these duties, however, the average price of steel rails in the United 
States fell from $28 in 1897 to $17.62 in 1898, and in the latter 
year the average American price was probably under the average 
of any other country. 

EFFECT OF THE TARIFF ON INDIVIDUAL CONCERNS. 

Many hold that the tariff has mainly been responsible for the 
great fortunes made by the typical millionaire, and the case of Mr. 
Andrew Carnegie is often quoted as a conclusive proof of this 
theory. I should not have dealt with an individual example in this 
connection but for the fact that it stands out so prominently in 
the recent history of the American iron trade as to make it almost 
impossible to ignore it in the consideration of this phase of the 
question. Moreover, I have had the privilege on more than one 
occasion of comparing notes with Mr. Carnegie and of knowing 
something more of the facts than "the man in the street"; and 
while I would not, of course, make use of any of the facts and 
figures brought to my knowledge in this way, I am quite at liberty 
to deal with facts that are common property in the light of the 
aspects thus presented. 

Everyone who makes any pretensions to a knowledge of the 
recent history of the American iron and steel industries must be 
fully aware that during one of the most critical periods in its 
career the operations of manufacturing firms, and not the least so 
those engaged in the steel-rail industry, were not uniformly suc- 
cessful. In the years 1896-1898 the principal firms connected In 
the American rail industry were the Carnegie Steel Company and 
the Illinois Steel Company, afterwards merged in the Federal Steel 
Company. But it is a well-known fact that over a large part of 
this period the Illinois Company failed to make profits, while the 
Carnegie Steel Company did remarkably well. The difference of 
results is mainly, if not wholly, due to differences in location, re- 
sources, and administration, and it is hardly likely to be claimed 
that the tariff was the cause of those differences, since its influence 
equally affected both. No doubt in the earlier history of the rail 
trade profits were large, but on a relatively small product, for In 
1875, when the Carnegie Company started, the total American pro- 
duction of steel rails was only 259,000 tons. 

TRUSTS AND THE TARIFF. 

In America the question has been many times raised of late 
whether there is not a large degree of interdependence between in- 
dustrial combinations and tariff duties, on this subject the United 
States Industrial Commission recently reported: 

"Protective tariffs do not seem to have been of special signifi- 
cance in the formation of industrial combinations in Europe, al- 
though in many cases the combination has been enabled to take 
advantage of the protective tariff in the way of securing higher 
prices. In free-trade England the combination movement seems 



50 Till'. 1AK111. 

to have developed considerably further than in protectionist 
Prance; but. <"» the other hand, the movement toward combination 
lias gone much further in extent in Austria, and (Jermany, both 
protectionist countries, than in England, although in England the 
form of combination is generally more complete. Doctor Lief- 
iiuiMii, in an article on combinations in England, expresses the 
opinion that the chief reason for the lesser development of mo- 
nopolistic combinations in England and the continuation of severe 
competition in branches of industry in which in Germany there 
have existed for a long time very rigid combinations* — for example, 
the coal industry — aeeaftbea the emine rather to the principle of 
extreme individualism in England, which has a much firmer hold 
on business men, in his judgment, than in Germany, and this ap- 
pears, on the whole, to be the right conception." 

AMERICAN TARIFFS FROfl 1789 TO 1897. 

[From "Protection and Prosperity," by Geo. B. Curtiss, Bing- 
hamton, N. Y.] 

Dates of Passage and Operation with Salient Features and 
Consequences. 

Act of July 4, 1789. — Went into effect August 10, 1789. Duties 
imposed upon 75 articles, 40 specific; 35 ad valorem; 15 free. Aver- 
age rate on total imports 7% Per cent. 

August 10, 1790. — Went into effect January 1, 1791. Imposed 
50 new duties and increased many of previous year. Average rate 
on total imports 8 per cent. 

March 3, 1791. — Slight increase — unimportant — rates increased 
on spirits. Average rate on total imports 8.43 per cent. 

May 2,«1792. — Went into effect July 1, 1792. Over 150 articles 
were enumerated in this bill. General increase of 2% per cent. 
Average rate on total imports 10.93 per cent. 

June 5-7, 1794. — Went into effect July 1, 1794. Imposed ad- 
ditional duties and made slight increase in many existing. In- 
creased rates on tobacco, snuff and refined sugar. Average rate 
on total imports 13.88 per cent. 

January 29, 1795. — Rates changed on types, sugar and wines. 
Many changes, some reductions. Twenty-five articles on free list. 
Average rate on total imports 8.04 per cent. 

March 3, July 8, 1797. — Increased rates on sugar, tea, molasses, 
velvets, cotton goods, candy. Average rate on total imports 9.25 
per cent. 

March 13, 1800. — Went into effect July 1, 1800. Increased rates 
on sugar and wines. Average rate on total imports 13.11 per cent. 
March 26, 1804. — Went into effect July 1, 1804. Increased all ad 
valorem rates 2% per cent. Increased rates on goods in foreign 
vessels 10 per cent. Additional rates on many specific articles. 
Mediterranean Fund. Average rate on total imports 13.06 per cent. 
March 3, 1807; March 4, 1808. — Salt and copper, saltpetre and 
sulphur made free. Increased duties on brass, hats, iron, linen, 
wines and many other articles. Average rate on total imports 
28.71 per cent. 

Embargo Act passed in December, 1807, prohibiting all imports 
from England and France, repealed May 15, 1809. — This was not a 
tariff measure, but at the same time had the effect of stimulating 
many industries. The people of the United States were thrown 
entirely upon their own resources and the result was new indus- 
tries established, and increased production in existing manufac- 
tures. 

Act of July 1, 1812. — Went into effect same day. Known as 
the war tariff. All duties were doubled. Supplementary Acts,' 
February 25, 1813; July 29, 1813; March 3, 1815; February 5, 1816. 
Great activity in manufacturing due both to high duties and the 
war. Average rate on all imports 32.73 per cent. 

Act of April 27, 1816. — Went into effect July 1, 1811. Known 
as the Lowndes-Calhoun bill. War rates were considerably re- 
. duced. Ad valorem duties ranged from iy 2 to 33 per cent. Un- 
enumerated goods paid 15 per cent. Iron and other metals 15 per 
cent. Woolen goods 25 per cent. Minimum principle adopted. 
Intended as a protective measure but failed because of duties be- 
ing too low to prevent vast importations from England at less 
than cost prices. Average rate on all imports 26.52 per cent. 
April 12, 1818. — Rates changed on Iron and Alum. 
March 3, 1819. — Rates on certain wines reduced. Average 
rate on all imports 35.02 per cent. 

Act of May 22, 1824.— Went into effect July 1, 1824. Decided 
increase in duties with most significant and gratifying results. 
Average rate on all imports 37 per cent. 

Act of May 19, 1828. — Went into effect September 2, 1828, and 
July 1, 1829. Known as the "Tariff of Abominations." Minimum 
extended. Rates increased. Average rate on all imports 47.80 per 
cent. 

May 20, 1830. — Rates reduced on teas, coffees and cocoa and 
molasses. 

July 14, 1832. — Went into effect March 4, 1833. Known as the 
"Modifying tarift." Duties on iron reduced, on woolens increased. 
Act of March 2, 1833. — Went into effect January 1, 1834. 
Known as the "Compromise Tariff." Rates reduced 10 per cent 
of all duties in excess of 20 per cent, etc., each alternate year till 
January 1, 1842, one-half the remaining excess of 20 per cent to be 
taken off on that date and the other half July 1, 1842. Linens, 
worsted goods, shawls and manufactures of silk made free. Aver- 
age rate on all imports about 17 per cent. 

July 4, 1836. — Rates reduced one-'aalf an wines. 



THE TARIFF. 57 

September 11, 1841.— Articles free and those paying less than 
20 per cent to pay 20 per cent. Railroad iron reduced to 20 per 

Act of August 30, 1843. — Took effect immediately. General re- 
vision and increase of rates 50 to 75 per cent. A thoroughly pro- 
tective measure. The result was a revival of industry and trade, 
followed by general prosperity. 

Act of July 30, 1846. — Went into effect December 1, 1846. 
Known as the "Walker Tariff." General reduction of duties. 
Changes from specific to ad valorem rates, duties for revenue only. 
Effects of this tariff were most disastrous in spite of foreign war, 
famine and the discovery of gold. 

Act of March 3, 1857. — Went into effect July 1, 1857. General 
revision and further reduction of duties. A culminating free-trade 
act, resulting in panic and commercial ruin. The worst period 
in the nation's hstory. 

Act of March 2, 1861. — Went into effect April 2, 1861. In- 
tended to raise the necessary revenue for government expendi- 
tures. ' . 

August 5, 1861. — First of the war tariffs, large increase in 
duties. 

December 24, 1861. — Duties increased on sugar, tea and coffee. 

July 14, 1862. — Went into effect August 2, 1862. Further in- 
crease of rates. 

March 3, 1863; April 20, 1864; June 30, 1864; March 5, 1865; 
March 15, 1866, and July 28, 1866. — Bills changing and generally 
increasing duties. 

Act of March 2, 1867. — Took effect immediately. Rates in- 
creased on wool and woolens giving great benefit to those indus- 
tries. 

February 24, 1869. — Rates increased on copper. 

July 14, December 20, 1870. — General changes. Free list large- 
ly reduced. Duty of $28 per ton on steel rails. 

May 1, 1872. — Tea and coffee made free. 

June 6, 1872. — Went into effect August 1, 1872. Reduction of 
10 per cent. Increased free list. 

June 22, 1874. — Revised statute, with slight and unimportant 

February 8, 1875. — Known as the "Little Tariff Bill."- General 

March 3, 1875. — Took effect immediately. Rates increased on 
sugar. Repeal of 10 per cent reduction of act of June 6, 1872. 

July 1, 1879. — Quinine made free. 

July 14, 1880. — A few unimportant changes. 

May 6, and December 3, 1882. — Repeals discriminating duty. 

Act of March 3, 1883. — Went into effect July 1, 1883. Known 
as the Tariff Commission Bill. General revision, reductions and 
increased free list. Severe blow to wool industry. 

Act of October 1, 1890. — Went into effect October 6, 1890. 
Known as the McKinley Bill, the most perfect tariff measure ever 
framed. Changes from ad valorem to specific rates. Enlarged 
free list. Sugar made free, a bounty being substituted. Recipro- 
city law. Unusual prosperity in all lines of industry. More men 
employed and at higher wages than ever before in the history of 
the nation. 

Act of 1894. — Went into effect August 27, 1894. Known as the 
Gorman-Wilson Bill. Became a law without the President's signa- 
ture. General reduction of duties. Wool put on free list. Great 
falling off in number of sheep. Increased importations of com- 
peting commodities to the detriment of American manufacturers. 
Great increase in national debt. Deficiency of revenue. Impair- 
ment of gold reserve, necessitating repeated bond issues. Decline 
in foreign trade. General depresson in business throughout the 
entire countrty. 

Act of 1897. — Went into effect July 24, 1897. Known as the 
"Dingley Act" — thoroughly protective and stated in its title that 
its purpose was to provide revenue for the Government and "to 
encourage the industries of the United States." It was followed 
by a revival of manufacturing, mining, agricultural and trans- 
portation industries, by a great increase in the general business 
of the country and increase in the exports of manufactures, large 
additions to the deposits in savings banks and an- era of general 
prosperity. 

Anti-Free Trade Data in England. 

[From New York Tribune.] 

A correspondent asks upon what data Mr. Chamberlain bases 
his demand for the abandonment of that free-trade system which 
was introduced to Great Britain as the consummate flower of 
business shrewdness, political wisdom and humane benevolence, 
and which has been maintained during half a century of marvel- 
lous growth and prosperity. Mr. Chamberlain points, then, to 
facts such as these: 

That sixty years ago the United Kingdom was practically self 
feeding, while to-day more than half its meats and more than 
two-thirds of 'its grains are of foreign origin. 

That in 1840 it purchased from abroad only 23,000,000 hun- 
dredweight of food of all kinds while now it purchases 304,000,000 
hundred weight. 

That this change is by no means altogether because of the 



58 I'HB TAKll I . 

iiinv.isr pf population, but also because of the decrease of homo 
production, it sixty years the population has Increased by 58 
per cent while the foreign food bill lias increased by 1,180 per 
cent. Also in thirty years the area planted in wheat has de- 
creased by 26 per cent, and that in vegetables has decreased by 
14 per cent. 

That the farm profits of the kingdom, which were nearly 
£47,000,000 a year before free trade, have been reduced under 
free trade to less than £15,(KK).(HM>. 

That of Great Britain's enormous Import trade, so greatly 
boasted by free traders, one half consists of food, drink and 
tobacco. 

That the industrial imports of the kingdom are declining*, 
baying been £7 5s. a head in 1871-'75, and being now only £0 13s. 

That during the last century, while exports have increased 
only from £2 9s. to £6 14s. a head, imports have at the same time 
increased from £1 19s. to £12 lis. a head. 

That while the decennial increase of population was 15 per 
cent in 1821-'31 and 11 *4 per cent in 1831-'41, before free trade, 
it was only 8 per cent in 1881-'91 and less than 10 per cent in 
1891-1901. under free trade. 

That these and other similar facts and figures indicate an 
unhealthy state of affairs, which must be remedied if hopeless 
decline of British greatness is to be avoided. 

This last named is not a fact of statistics. It is a deduction 
made by Mr. Chamberlain and by those who take his view of 
the case. It is, however, scarcely denied by the free traders. 

DEMOCRACY AND PANIC PERIODS. 

[From Philadelphia Press, July 13, 1904.] 

All our worst panic periods have come, not after a free trade 
tariff actually adopted, but after Democratic success and free trade 
agitation. What has been worse in the memory of men. now liv- 
ing; than the terrible grinding years from 1875 to 1878, with the 
strike summer of 1877 between? These years followed a Demo- 
cratic House, elected by a tidal wave in 1874. No turn of the tide 
came until the political tide turned. — The Press, June 28. 

A wide range of our Democratic friends in various news- 
papers are worried over this paragraph. The panic of 1873, 
they aver, assert and reiterate, came out of a Republican sky. 
So it did. The Republican party was in full control when Jay 
Cooke & Co. put up its shutters in September, 1873. 

This was a financial smash. A speculative craze brought a 
speculative crash. A gold crash had come in September, 1869, 
and recovery followed. A stock crash came in September, 1873. 
A crash in stocks may come without affecting general business. 
In 1901 there was a headlong fall in stocks, failures and liquida- 
tion, but the general trade of the country was not affected. In 
1873, the mere failure of one great railroad system, not yet com 
pleted, need not have brought a long period of depression. 
Recovery should have followed. 

It did not. In 1874 a Democratic tidal wave swept the country. 
Free trade was talked everywhere. The currency was attacked. 
The Democratic party allied itself in all the Western States 
with the greenback craze. Resumption was assailed. When the 
resumption act was passed by the Republican party it was attacked 
by the entire Democratic party. East and West it was denounced 
as "Sherman sham." 

The Democratic party challenged confidence in the gold value 
of the greenback. It straddled. It nominated for President a 
free trader, though a hard money man, Tilden. It nominated 
for Vice-President a free trader and a soft-money man, Hendricks. 
Eastern Democrats favored a gold value for all v currency, but 
attacked paper money. Western Democrats demanded more paper 
money. The party was divided as it is now and, as now, its new 
leaders in 1876 and in 1880, anxiously sought to persuade the 
public to forget the recent financial errors of the party. 

From 1874 to 1878 this Democratic policy depressed all busi- 
ness and destroyed trade. The panic of 1873 had come and gone. 
The price of stocks recovered in the Winter of 1874. Trade 
picked up. Failures fell in amount to a normal year. After the 
election of a Democratic House in 1874 stocks fell and failures 
increased. As Democratic greenback agitation went on, opposed 
by Eastern Democratis, but urged West and South, as with free 



THE TARIFF. 



59 



silver, worse came. In 1877 shares went to their lowest point. 
In 1878 aggregate failures exceeded those of 1873. The total of 
liabilities has never been exceeded but once, in 1893, after the 
hist election of Grover Cleveland. 

Worse years than 1877 and 1878 the country has never known. 
They were years, as every one remembers, of the end of the 
greenback and the beginning of free silver, of agitation for Dem- 
ocratic free trade and its outspoken support by the Democratic 
party. 

The Republican party in 1879 resumed gold payments and 
prosperity came when Bland and every other Democrat was pre- 
dicting disaster. Democratic free trade was met by the assertion 
of Republican protection. In 1880 this was the chief issue, and 
when it was won prosperity came like a flood. 

"No turn of the tide came until the political tide turned." 

Tariffs and Revenues, 1790 to 1904. 

Years in which low tariffs and protective tariffs, respectively, have 
been in operation in the United States, shotving the excess of 
expenditures or receipts of the Government in each year. 
[Compiled from official statements of the Treasury Department.] 



Low tariffs. 


Protective tariffs. 


Fiscal year— 


Deficit. 


Surplus. 


Fiscal year— 


Deficit. 


Surplus. 






$1,312,499 


1813 


$17,341,442 
23,539,300 
17.246,744 






$4,599,909 


1814 


( War pe- 


1793 


805,993 


1815 

1816 


f riod. 


1794 


865,917 
1,195,066 


$16,480,630 






1825 




5,983,640 


1796 


2,586.879 

2,680.154 

292.909 


1826 




8,222,575 


1797 




1827 




6,827,198 


1798 




1828 




6,369,087 


1799 


1,749,004 


1829 




9,643.574 




34,778 
3,541,831 
7.019,542 
3,111.811 
3.188.399 
4.546.344 
6.110,753 
8,043,868 
7,999,249 


1830 




9,702.008 


1801 




1831 




13,289.004 


1802 




1832 




14,578,500 


1803 




1833 




10,930,874 


1804 .. 




1843 


3,549,791 




1805 




1844 


6,837,148 


1806 




1845 




7,034,278 


1807 




1846 (half year).. 




f.214,392 


1808 




1862 


417,650,981 
606,639.331 
621,556,130 
973.068.131 


1 


1809 


2.507,273 


1863 




1810 


909,461 
6,244,594 


1864 




1811 




1865 




1812.. . 


10,479,638 


1866 


927,208 


1817 


13,108.157 
1,566.543 
3,091,370 


1867 




116,317,354 


1818 


):::: 


1868 




6 095 320 


1819.. . . 




1869 




35,997,658 


1820. 


444,685 
1.276,173 


1870 




102.302,829 


1821. . 


1871 




91,270,711 


1822 


5,231.996 
5,834,036 


1872 




94.137,534 


1823 




1873 




36,938,348 


1824 


892,489 


1874 


1.297,709 




1834 


3,164,365 

17,857.274 
19,958,632 


1875 . 


9 397 379 


1835 . . . 




1876 




24.965,500 


1836 


"l2.289,'06i' 
7.562,152 


1877 




39,666,167 


1837 .... 


1878 




20,482,449 


1838 




1879 




5,374,253 


1839 


4,585.967 


1880 




68.678.864 


1840 


4.834.402 
9,621.657 
5,158.689 


1881 




101.130 658 


1841 




1882. .. 




145.543,811 


1842 




1883 




132,879,444 


1846 (half year).. 


1,219.392 

(.Warpe- 
j" riod. 

2.644.506 
4.803.561 
5.456.563 
13.843,043 
18.761,886 
6,714,912 
5.330.434 
1.330.904 


1884 




104,393,626 


1847 


28,453,381 
12,778,001 


1885 




63,463 775 




1886... 




93,956,589 


1849 


1887 




103 471,098 


1850 


1888 




119.612,116 


1851 




1889 




105.053 443 






1890 




105,344,446 


1853 




1891 




37.239,763 


1854 




1892 




9,914 454 


1855 




1893 




2 341,674 






1894 


69,803,261 
38,047.247 
89.111,560 




1857 




1898 


1 War pe- 




27,327.126 
16,216.492 
7.821,276 
25,173.914 
42,805,223 
25,203,246 
" 18,052,455 


1899 


1859 




1900 


79,527,060 






1901 




77,717,984 


1861 




1902 




91.287.376 






1903 . . . 




54,297,667 


1896 










1897 













GO 



THE i \ Kill-. 



THE PANIC OF 1893-94 WAS NOT DUE TO CROP FAILURES. 
The assertion has been persistently made by the apologists for 

the Wilseii-(ienn;Mi tariff t ii.it the general depressed financial and 
Industrial conditions and shortage of money then existing were 
dne to short Crops in 1892, 1803, and 1894 and were not Chargeable 

lo the tariff law. This assertion, while absolutely untrue, is 
worthy Of earofnl attention boeanse of its misleading character 
and because of the fact that without investigation the statement 
appears plausible. It is possible to show, for example, that the 
corn crop of 1892 was l<><> million bushels less than that of 1891; 
that the wheat crop of 18M2 was !><; million bushels less than that 
of 181)1. ami that the oat crop of 1892 was 77 million bushels below 
lhai of IN'.tl ; and this statement unaccompanied by any other 
facts or figures niight give some color to the claim that the de- 
pression of 1N!»3 was dne to some extent at least to the short 
crops in 1892. But a further examination of the figures of pro- 
duction lor a term of years shows the absolute falsity of this 
assertion. The table given below shows the production, farm 
value, and value per bushel of corn, wheat, and oats in the United 
States from 1885 to 1903. It will be seen from an examination of 
the table that while it is true that the corn, wheat, and oat crops 
were less in 1892 than in 1891, they were in each case more than 
those crops in 1890. The corn crop of 1892 was 1,628,464,000 
bushels, as against 2,000,154,000 bushels in 1891, and this is urged 
as one of the causes of the financial depression of 1893 ; but an 
examination of the table will show that the corn crop of 1890 was 
only 1,489,790,000 bushels, as against 2,112.892,000 bushels in 1889. 
As a drop of 623 million bushels in the corn crop of 1890 as com- 
pared with the preceding year caused no panic or financial depres- 
sion in 1891, how can it be possible that a drop of 432 million 
bushels in 1892 was the cause of the panic in 1893? The same 
general line of facts holds good with reference to wheat and oats. 
While it is true that the wheat crop of 1892 was 96 million bushels 
below that of 1891, it is also true that the wheat crop of 1890 was 
91 millions below that of 1889 and no panic ensued ; and similar 
conditions are apparent with reference to the oat crop of 1890. 

An examination of the column showing the average farm value 
per bushel of these crops, which accompanies the statement of 
quantity produced, is suggestive. This shows that the farm value 
per bushel of corn, which was 50.6 cents in 1890, practically 40 
cents in 1891 and 1892, moved steadily downward until it reached 
21.5 cents in 1896 under low tariff ; that the farm value per bushel 
of wheat, which in 1890 and 1891 was above 83 cents, had fallen 
to 49 cents in 1894 ; and the farm value of oata, which in 1891 and 
1892 was 31.5 cents per bushel, was 18.7 cents per bushel in 1896. 

Production, farm value, and value per bushel of corn, wheat, and 
oats, 1S85 to 1903. 





Corn. 


Wheat. 


Oats. 




Total. 


Total* 


Total. 


Year. 


Production. 


Farm 
value 
per 
bushel 
Dec. 1. 


Produc- 
tion. 


Farm 
value 
per 
bushel 
Dec. 1. 


Produc- 
tion. 


Farm 
value 
per 
bushel 
Dec. 1. 


1885 

1886 


• Bushels. 

1,936.176,000 

1,665,441,000 

1,456,161,000 

1,987,790.000 

2.112,892,000 

1,489.970,000 

2.060,154,000 

1.628,464,000 

1,619,496,131 

1,212,770,052 

2.151,138,580 

2,283,875,165 

1,902,967,933 

1,924,184,660 

2.078,143,933 

2.105,102,516 

1,522,519.891 

2.523,648,312 

2,244,176,925 


Cents. 
32.8 
36.6 
44.4 
34.1 
28.3 
50.6 
40.6 
39.4 
36.5 
45.7 
25.3 
21.5 
26.3 
28.7 
30.3 
35.7 
60.5 
40.3 
42.5 


Bushels. 
357,112,000 
457,218,000 
456,329,000 
415,868,000 
490,560,000 
399,262,000 
611,780,000 
515,949.000 
396.131.725 
460,267,416 
467,102,947 
427,684,346 
530,149.168 
675,148,705 
547,303,846 
522,229.505 
748.460,218 
670.063,008 
637,821,835 


Cents. 
77.1 
68.7 
68.1 
92.6 
69.8 
83.8 
83.9 
62.4 
53.8 
49.1 
50.9 
72.6 
80.8 
58.2 
58.4 
61.9 
62.4 
63.0 
69.5 


Bushels. 
629,409,000 
624,134,000 
659,618,000 
701,735,000 
751.515,000 
523,621,000 
738.394,000 
661,035.000 
638,854,850 
662,036,928 
824.443,537 
707,346.404 
698,767,809 
730,906,643 
796,177,713 
809,125,989 
736,808,724 
987,842,712 
784,094,199 


Cents. 

28.5 
29.8 


1887 

1888 

1889 

1890 


30.4 
27.8 
22.9 
42.4 


1891 

1892 

1893 

1894 


31.5 
31.7 
29.4 
32.4 


1895 


19.9 


1896 


18.7 


1897 

1898 

1899 

1900 


21.2 
25.5 
24.9 
25.8 


1901 

1902 

1903 


39.9 
30.7 
34.1 







THE TARIFF. 



61 



Coal Production and Consumption in Protective United States and 
Germany and Free-Trade United Kingdom from 1860 to 1902 — 
Evidence of Much Greater Business Activity in the Protective 
Tariff Countries. 

This table shows the production and consumption in the two 
protective-tariff countries, the United States and Germany, com- 
pared with that in the one low-tariff country, the United King- 
dom. Coal consumption is an important measure of manufacturing 
activity and growth, since it is the chief supply of power for man- 
ufacturing and transportation. It will be seen that the consump- 
tion of coal in the United Kingdom only increased about 44 per 
cent, from 1875 to 1902, while that of Germany increased about 
200 per cent, and that of the' United States nearly 500 per cent. 
The importance of these figures of coal consumption is very great 
as a measure of manufacturing activity. This statement of rela- 
tive increase in consumption in the three countries is especially 
important because in most cases the figures of production only are 
shown, while the fact that the United Kingdom exports a large 
share of her coal production makes a comparison based upon 
figures of production misleading. It is the consumption which 
measures the activity in manufacturing, and these figures of con- 
sumption in the protective and free-trade countries, respectively, 
are worthy of careful attention. 

Coal production and consumption in the United Kingdom, Ger- 
many and the United States for the years named. 





United Kingdom. 


Germany. 


United States. 


Years. 


Product'n 


Consump'n 


Product'n 


Consump'n 


Product'n 


Consump'n 




gross tons 


gross tons 


metr. tons 


metr. tons 


gross tons 


gross tons 




@ 2240 lbs. 


@ 2240 lbs. 


@ 2204.6 lbs. 


(& 2204.6 lbs. 


© 2240 lbs. 


@ 2240 lbs. 


1860 


80,043,000 




* 16,731.000 


1 


14.440,000 


14.494,000 


1865 


98.151,000 




* 28,553,000 


>No data. 


20,310,000 


20.861,000 


1870 


110,431.000 




* 34,003,000 


s 


32.863,000 


33,051.000 


1875 


131.867,000 


114.044,000 


47,804,000 


47.562.000 


46,686.000 


46.604.000 


1880 


146,819,000 


123.190,000 


59,118,000 


57,002.000 


67,998.000 


67.855,000 


1885 


159.351,000 


128,585,000 


73,676.000 


70.729.000 


99.250,000 


98.752,000 


1890 


181,614.000 


142.955,000 


89,291,000 


90.798.000 


140.867,000 


139,627.000 


1895 


189,661.000 


146.768,000 


103,958,000 


105.876.000 


172,426.000 


170,097,000 


1900 


225.181.000 


166,786.000 


149,788.000 


149.804.000 


240.789,000 


234.781.000 


1901 


219,047.000 


161,271,000 


153,019,000 


152,138.000 


261,875,000 


256.412,000 


1902 


227,095,000 


166,365,000 


150,600,000 


148,785,000 


269,277,000 


265.791,000 



♦Figures for the German Customs Union. 
(The amount of British bunker coal not found prior to 1875.) 

Groicth in coal production in free-trade Great Britain, compared 
with that of the protection countries, United States, Germany, 
and France; also the total coal production of the world and 
the per cent supplied by the United States at quinquennial 
periods from 1868 to 1895, and annually from 1896 to 1902, in 
tons of 2,000 pounds. 

[From reports of the United States Geological Survey.] 



Year. 


United 
States. 


Great 

Britain. 


Germany 


France. 


Total pro- 
duction 
of the 
world. 


Per 
cent 

of 
U. S. 


•1868 


Short tons. 
31,648.960 
36,806,560 
52,288,320 
76,157,944 
111,159,795 
157.770,963 
193,217,530 
191,986,357 
200,229,199 
219,976,267 
253,741,192 
269.684,027 
293,299,816 
301,590.439 


Short tons. 
115,518,096 
123.682.935 
149,303,263 
164,605.738 
178,473.588 
203,408,003 
212,320,725 
218,804,611 
226,385,523 
226,301,058 
246,506,155 
252,203,056 
245,332,578 
254,346,447 


Short tons. 
36,249,233 
37,488,312 
52.703,970 
65,177,634 
81,227,255 
98,398.500 
114,561,318 
123,943,159 
132,762,882 
144,283,196 
149,719,766 
164.805,202 
168.217,082 
165,826.496 


Short tons. 
14.697,236 
14.530,716 
18.694,916 
21,346,124 
21,510,359 
28,756,638 
30,877.922 
32.167.270 
33.938.987 
35,656,426 
36,215,026 
36,811,536 
35,596,536 
33,286,146 


Short tons. 
221.035,430 
238,621.068 
308,419.177 
369.413,780 
447,783,802 
563,693,232 
644,177,076 
664,001,718 
697.213,515 
738,129.608 
801,976,021 
846.041,848 
869,037,199 


14.32 
15.42 
16.95 
20.62 
24.82 
27.99 
29.98 
28.92 
28.72 
29.80 
31.63 
31.88 
33.76 


1870 


1875 


1880 


1885 


1890 


1895 


1896 


1897 


1898 


1899 


1900 


1901 


1902 









62 



I III i \uu i . 



TARIFFS AND TRADE BALANCES, 1790-1903. 

Years in which low tariffs and protective tariffs, respectively, 
have been in operation in the United states, shouting the excess 
<>f imports or em ports in each year and the total excess of im- 
ports or exports under each system. 

[Compiled from official statements of the Bureau of Statistics.] 





L»w 


tariffs 


Fiscal Year 


Protective tariffs 


Fiscal Year 


Excess of 
imports 


Excess of 
exports 


Excess of 
imports 


Excess of 
exports 


1790 


$2,794,844 

10,187.959 

10.746,902 

4,990,428 

1,556,276 

21,766.396 

22.861.539 

24 084,696 

7,224,289 

403,626 

20.280,998 

18,342,998 

4,376,189 

8,866,638 

7,300,926 

25.033,979 

27.873.037 

30.156.860 

34.659,040 

7,196,767 

18,642,080 




1813 




$5,861,017 


1791 




1814 


$6,037,559 
60,483,621 
65,182,948 


1792 




1815 




1798 




1816 




1794 




1826 


549,023 


1795 




1826 


5,202,722 


1796 




1827.... 


2,977.009 


1797 




1828 


16,998,873 " 


1798 




1829 


846,736 
8,949.779 


1799 




1880 




1800 




1831.... 


23,589,527 
13,601,159 
13,619,211 


1801 




1832 




1802 




1833 




1803 




1843... 


40,392.225 
3.141,226 


1804 




1844 




1805 .... 




1845 


71,44,211 

41,65,409 


1806 .. 




1846* 




1807 




1862 


1,313,824 


1808 




1863 


39,371,368 

167,609,295 

72,716,277 

86,952,544 

101,254,955 

75,483,541 

131,388,682 

43,186,640 

77,403,506 

182,417,461 

119,656,288 


1809 




1864... . 




1810 




1865 . 




1811 


$7,916,832 


1866 




1812 .. 


38,502.764 
11,578,431 
28,468,867 
16,982 479 
4,758,331 


1867 




_ 1817 




1868 




1818 




1869 




1819 




1870 




1820 




1871 




1821 


75,489 


1872 




1822 


18,521,694 
4,155 328 
3,197,067 
6.349,485 
21.548,493 
52,240 450 
19,029,676 


1873 




1823 .... 




1874 


18.876,698 


1824 . 




1875 


19,562,725 


1834 




1876 


79,643,481 
151,152,094 
257,814,284 
264,661,666 
167,683,912 
259,712,718 

25,902,683 
100,658,488 

72,815,916 
164,662,426 

44,08s,694 

23,863,443 


1835 




1877 




1836 




1878 . 




1837 




1879 




1838 ... 


9,008.282 


1880 




1839. 


44,245,283 


1881 




1840 


25,410,226 


1882 




1841 


11,140,073 


1883 




1842 


3,802,924 


1884 




1846. ... 


4,165,408 


1885 




1847 


34,817,249 


1886 




1848 


10,448,129 
855,027 
29,133,800 
21,856,170 
40,456, 1«7 
60,287,983 
60,760,030 
88,899,206 
29,212,«87 
54,604,582 


1887 




1849 




1888 


28,002,607 
2,730,297 


1850 




1889 




1851 




1890 


68,618,275 
39,564,614 

202,875,686 


1862 




1891 




1863 




1892 




1854 




1893., 


18,735,728 


1855 




1894 


237,145,950 
615,432,676 
529,874,813 
644,541,898 
664,592,826 
478,398.453 
394 422 442 


1856 .... 




1898 




1857 




1899 




1868 


8,672,620 


1900 




1859 


38,431,290 
20,040,062 
69,756,709 


1901 




1860 




1902 




1861 




1903 




1895 


75,568,200 
102.882,264 
286,263,144 








1896 






1897 












Total... 


1,068,872,161 


553,917,230 


Total... 


1,371,397,064 


5,470.423,925 



*Half year. 

Net excess of IMPORTS under low tariffs $514,954,8®! 

Net excess of EXPORTS under protective tariffs 4,099,026,861 



Net excess of exports over imports from 1789 to March 

1, 1897 380,028,497 

Net excess of exports over imports from March 1, 1897, 

to March 1, 1904 3,594,829,82« 



TIlK TARIFF. 88 

Killed by Lack of Protection. 

[From St. Thomas (Ontario, Canada) Daily Times of April 14, 1904.] 

The directors of the Canada Woolen Mills Company have de- 
cided to close their business and sell out their plants at Hespeler, 
Carleton Place, Waterloo, and Lambton Mills, throwing 700 people 
out of employment and destroying an industry representing a 
million dollars capital. The directors have been losing money 
because of the preference given to British goods. Those 700 em- 
ployees must live somewhere, and will probably be forced to leave 
the country. Loss of population of this class means loss to every 
kind of business; hence a loss in wealth to the province. The 
question for our lawmakers and people to consider is : Would it 
not be better to protect this industry sufficiently to keep these 
people in employment here, rather than allow them to be forced 
out? The strength of a nation is its people; the more industrious 
the people, the more strength and wealth. 

The Tariff and Wages. 

Foreign workmen flock to the United States because of the 
high wages paid here, but the large number that come help to 
reduce wages. At Turin, in Italy, according to the consular 
reports, the rate of wages paid by the city for day laborers is 
from 40 to 60 cents a day. Bricklayers receive from 80 cents 
to $1, carpenters from 60 to 70 cents, and painters from 40 to 50 
cents, not one-third of, the average rate paid in this country. The 
Italian workman can earn enough in the United States during 
the summer to go home and live without work during the winter, 
as comparatively little is required for his sustenance in a warm 
climate. But low wages are not confined to Italy. 

In London, for instance, the pay of a policeman at the start 
is $0.25 a week, and that is increased yearly by 25 cents until 
the amount reaches $8.14 a week, and that is the limit. In this 
country, in New York, a patrolman receives $25 a week, or three 
times as much as the experienced member of the British force. 
The pay is less on the Continent of Europe than in Great Britain. 
With such low wages and all the advantages in machinery that 
the workmen in the United States have, nothing could prevent 
a similar reduction of wages in this country excepting the tariff. 
That is why the Republican party will stand steadfastly for the 
protective tariff, and will only make changes after careful 
investigation and certain knowledge that the changes would be 
justified. 

Wages are much lower in Canada than in the United States, 
and that has to be taken into consideration in any negotiations 
for a reciprocity treaty. s 

The wage question is of the greatest importance in this 
country. There will be no legislation to cause any reduction, 
such as took place under the last Cleveland Administration, unless 
the Democrats are again returned to power, which is improbable. 

Protection and Wages in Germany. 

The Spanish Economist and Financier has the following in a 
recent issue : — 

The Chamber of Commerce of Essen, Germany, has' just pub- 
lished an interesting- memorial on the influence of protective tariffs 
on wages and on the conditions of the working- classes. Referring 
to the district of Essen, the Chamber establishes the fact that the 
average wages, which were 3.30 marks in 1871, were 3.89 marks in 
1875, but went backward till they descended to 3.30 marks again. 
In 1879 a system truly Protectionist was inaugurated. From that 
time on wages went up from 3.57 marks' in 1882 to 3.71 marks in 
1888, 4.06 marks in 1892, 4.10 marks in 1895, and 4.78 marks in 
1900. The conclusion drawn by the Chamber of Commerce experts 
from the facts cited is that wages remained practically at a stand- 
still during the years 1875-1879, just preceding the Protectionist 
era, while the advance during the later, or protection, period was' 
fully 58 per cent. To meet the objection that foods have gone up 
faster than wages, thus neutralizing the increased purchasing 
power of the laborer, the Chamber shows that the foods consumed 
by the laboring classes dropped as follows': Bread, 20 per cent; 
potatoes, 29 per cent; while beef increased only 5 per cent; veal, 
21 per cent, and pork, 27 per cent. 



64 



IM'IMKTAL GROW 'I H IN l\oi.\\l> \Mi UNITED STATES. 



INDUSTRIAL GROWTH IN ENGLAND AND UNITED 
STATES COMPARED. 

In ;in article on occupation :is a test of prosperity, the Fort- 
nightly Review presents statistics to show that during the twenty 
years. 1NN1 and l!iol, the increase in the Dumber of persons en- 
gaged in the leading industries of Great Britain lias not in- 
creased in proportion to the population, and on this showing it 
bases an argument in favor of tariff reform. Without entering 
into the economic discussion which is the occasion of the Fort- 
nightly Keview's article, it is of value to compare the statistics 
of Great Britain with those of the United States in this matter 
of the number of persons engaged in the leading industries. 

Such a comparison is in every way gratifying to this country. 
It shows conclusively that the industrial growth in the United 
States has been much more rapid than in England in the past 
twenty years. In # that time the percentage of increase in popula- 
tion in the United States has been 52 and in England about 25, 
and yet in eight selected industries the increase in the number 
of persons engaged in them has been in the United States 56 
per cent and in England only 6.7 per cent. In other words, in 
these industries the number of persons engaged has increased 
more rapidly than the population in the United States, while in 
England the increase is very much less than that in the popula- 
tion. In order to show this more clearly the following tables 
are given to exhibit the number of persons engaged in eight in- 
dustries in 1880 and 1900 in the United States and in 1881 and 
1901 in England and Wales, with the percentages of increases 
in both instances : 

Number of persons engaged in eight industries in England. 





1881. 


1901. 


In- 
crease. 


Perct. 
of inc. 




552.000 

224.000 
68.000 
84,000 

201,000 
13,000 
65.000 

240,000 


582,000 
251,000 

93,000 

122,000 

216.000 

5,000 

39.000 
236,000 


30,000 
27,000 
25.000 
38,000 
15.000 
*8.000 
*26,000 
*4,000 


5.4 




12.0 




36.8 




45.2 




7.4 




*61.0 


Silk 


*40.0 




♦1.6 






Total. . . 


1,447,000 


1.544.000 


97,000 


6.7 




25.0 













♦Decrease. 
Number of persons engaged in eight industries in the United States. 





1880. 


1900. 


In- 
crease. 


Perct. 
of inc. 




185.000 

111,000 
24,000 
63.000 

159.000 

484 

31,000 

105,000 


303.000 
143.000 

53.000 

100,000 

266,000 

3,283 

65,000 
126.000 


118,000 
32,000 
29,000 
37,000 

107,000 
2,799 
34,000 
21,000 


62 




28 




120 




59 




67 




578 




109 




20 






\ 


678,484 


1.059,283 


380.797 


56 




52 













THE TARIFF, 



65 



SHARE OF THE IRON AND STEEL MANUFACTURES PRO- 
DUCED BY THE UNITED STATES STEEL CORPORATION. 

The table which follows shows the share of iron ore and iron 
and steel produced in the United States in the calendar year of 
1002, by the United States Steel corporation and by independent 
companies. This table has been prepared with great care by the 
Secretary of American Iron and Steel Association, Mr. James M. 
Swank, and its accuracy cannot be called in question. Mr. Swank 
is and has been for many years an accepted authority in the United 
States on all matters pertaining to iron and steel production and 
this statement prepared by him is Vherefore of special value in in- 
dicating the share of iron and steel product of the United States 
produced by the United States Steel corporation and by independ- 
ent companies, respectively. It will be seen that of the finished 
rolled products of iron and steel produced in the United States 
in 1002. 50.8 per cent was produced by the United States Steel 
Corporation and 40.2 per cent by independent companies. The 
table is especially important in its relation to the question of 
control of prices by this greatest of industrial corporations. The 
fact that practically one-half of the iron and steel products of the 
United States are produced by independent companies in com- 
petition with this single organization, suggests the impracticabil- 
ity of control of prices by even this greatest of the manufacturing 
combinations of the United States. A similar table prepared by 
Mr. Swank for the year 1001 shows similar results. The table 
for the year 1003 is not yet available and the table covering con- 
conditions in 1002 is presented as the latest available data.' 
Statistics of the United States Steel Corporation for 1902. 
[From Bulletin of American Iron and Steel Association, Jan. 25, 1904,] 
With the single exception of iron ore the statistics presented 
below have been carefully compiled from the returns of production 
made to the American Iron and Steel Association for the whole of 
the calendar year 1902 by all the constituent companies of the 
United States Steel Corporation and by all other iron and steel 
manufacturing- companies. The statistics of iron ore shipments 
and production by the Corporation in 1902 have been obtained from 
the Corporation itself. Other statistics of iron ore production have 
been obtained from the Census Bureau, and other statistics of iron 
ore shipments have been obtained from the Iron Trade Review, of 
Cleveland, Ohio. 



Iron ore shipments and 

production in the calendar 

year 1902. Gross tons. 


By U. S. 

Steel 

Corporation. 


By inde- 
pendent 
companies. 


Total ship- 
ments and 
production. 


Percentage 
of U.S. Steel 
Corporation. 


Shipments of iron ore from 
the Lake Superior re- 
gion in 1902.. 


15,836,806 
16,063.179 


11.734,315 

19,288.256 


27,571,121 
35,351,435 


57.4 


Total production of iron 
ore in 1902 


45 4 






Iron and steel actually 

produced in the calendar 

year 1902. Gross tons. 


Production 
•i.vU.S. Steel 
Corporation. 


Production 
by indepen- 
dent comp's. 


Total 
production. 


Percentage 
of U.S. Steel 
Corporation. 


Bessemer, basic, and low- 
phosphorus pig iron 

Spiegeleisen and ferro- 
manganese 


7,733.724 
172,718 

69,088 


4,698,034 
40,263 

5,107,480 


12,431,758 
212,981 

5.176.568 


62.2 
81 1 


Forge, foundry, malleable 
Bessemer, and all other 
kinds of pig- iron 


1.3 


Total pig- iron, including 




9.845.777 


17,821,307 




manganese 


7,975.530 


44.8 


Bessemer steel ingots and 


6,759,210 

2,984.708 


2,379,153 

2,703,021 


9,138,363 

5,687,729 


74.0 
52.5 


Open-hearth steel ingots 
and castings 


Total Bessemer and open- 
hearth steel ingots and 
castings 


9.743.918 


5,082,174 


14,826,092 


65.7 


Bessemer steel rails 

Structural shapes 


1,920,786 
753.481 

1,583,865 
1,126,826 

1.701.700 


1,014,606 
546,845 

1,081,544 
447,467 

3.766,996 


2,935,392 
1,300,326 

2.665.409 
1,574,293 

5,468,696 


65.4 
57 9 


Plates and sheets, includ- 
ing black plates for tinn- 
ing 


59.4 


Wire rods 


All other finished rolled 
products, including bars, 
skelp. cut nails, open- 
hearth steel rails, iron 
rails, etc 


31.1 


Total of all finished rolled 
products 


7,086,658 
7,122,354 


6,857,458 
3,859.892 


13.944,116 
10.982,246 


50.8 
64.9 


Wire nails, kegs of 100 lbs.. 



i 



66 



I III I \ Kl 1 1 . 



rrioon of BotKM ami Shoes Under the Wilson and Dlngley Tariffs— 
The Duty on Hides Did Not Affeet Prices. 

This table shows the wholesale prices of boots and shoes ol 
various grades, in each quarter of each year from th<> be 
ginning of 1897 to 1004. The Dingley ijct placed a duty of l: 
per cent on hi<lt»s of cattle, and it was, of course, predicted by tin 
Democrats that this would advance the price of boots and shoes 
It will be seen, however, from a study of this table, that there was 
no advance during the first four years of the operation of thai 
a«t. thus showing thai the ta/iff did not cause any increase hi 
prices to the consumer. While it is a fact that there has been a 
slight advance in the past three years, this has been due to the 
increase in wages and general activity of business, and could'nol 
have been caused by the tariff since no advance occurred in the 
years immediately following its application. 



Sao 



1-gsS 

111 



I s ! 



4) 03 O 
S«3 









£8S8§5£8l2!8gg55SS;88S8S88SS8888gg& 



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sur »•;*• is^is ^^j^;^ ^ iR SKRxaKSSR:* 

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£<*£ 



S*1 



THE TARIFF. 



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<0OOlX>t-i<M-+<OOa0t~XSOCOl>:» 
i^QCtDCOO^tDaxoOOON 

r so* - ®*. -" x* r-* -*" co t-* o m" 10* -*' £• 

l»5~<00in<N*»e0©SO<N*»'MT£CO 
>>-lSDX!M<?»CO(NXCO'-lSO<N©"<* 
gj ** ^ <# 5* CO* ©" »o" SO 55" <g M* 
m OS qo SO 5* «">SD«CO 

£ s s 3 ~ss 



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cost wmoj p7 th eo'os* 

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** < Heoco® lf s* c, eococortjoin"^ ,c ^ 
x^^Min^^ n — ' ^ w oo*" 

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68 



i in: tariff. 



Total vain* of imports and exports into and from the United States from October I, 1180. to Junt SO, 1909. 
(Compiled from publications of the Bureau of Statistics.] 





Klaeal 
Taar 




March 


ndu*. 




fiscal 
Year. 












Administration. 


Import*. 


Kiporta. 


Rxaas* of Im- 
port*. 


K»ce**of*x- 

liorta 






f 1T»0 

1T91 

m* 

1T9S 

1794 

1T*6 

17*8 

' 17*7 

1TS8 

1T»* 

' 1801 '.'.'.'.'.'.". 

19*3 

18*3 

18*4 

1X06 

1800 

18*7 

1808 

' 180* 

1810 

1811 

1812 

181.1 

1814 

1815 

, 1816 

1817 '.'.'.'.'.'.'.'. 

1818 

181* 

1x30 

1831 

1832 

1823 

1824 

" 1X25 

1828 


S33.000.0O0 

iiiooo'.oec 

31.IW.000 
34.M0.000 
S9..M.3IM 
81.4.1S.I64 
76.S79.406 
ux.001.7U0 
7V.0W.14x 
(lt.SS3.7es 
11I.S63.61I 

■MMM 

85.0O*.0O0 

iro.oeo.ooo 

1S9.410.000 
188.600.000 
56.990.000 
0.1,400.000 
85.400.000 
03.400.000 

22.005,000 
•13,966,00* 
11S.04I.374 

147.103,000 

99,260.00* 
12t.760.00fl 
87,116.000 
74.460.000 
64.620.834 
7».871.»6 
72.481.371 
TS.1S9.TS2 
•v.189.31* 
79.093.511 
71,383.938 
81.02O.oxs 
67.088.916 
62.720.906 
96,885,17* 
95,121.763 
101.047.94S 

108.609,700 
1S6.764.296 
17J.5T9.154 
130.472.80S 

96.970,288 
166.496.96S 

98.268.706 
122.967,644 

98.076.071 

42.43S.4C4 
102.tSO4.6O0 
118,184.822 

117,914,000 

122.424.S49 
148.6S8.I144 
141.208.199 
173.501l..-.2<; 
210.771.429 
207.440.39X 
2SS.777.2K0 
297.803.794 
2S7.80x.708 
StO. 482.310 
S48.42X.342 
203.S3X.664 
S51.SM.S41 
S63.S16.119 
889.310.542 
189.356.677 
243.335.815 
316.447.283 
238.745.5X0 
434.812.066 
395.761.098 
357.436.440 
417.508.379 
435.968.408 
520,223.684 
826.595.077 
642.136.210 
567.406.342 
533.005.436 
460.741.190 
451,323.126 
4377061.533 
445.767.777 
667.954.746 
642.664.628 
724.639.574 
723.180.914 
667.697.693 
JS77.527.329 
635.436.1.16 
692.319.768 
"23.957.114 
745.131.652 
7X9.310.409 
844.916.196 
827.402.462 
866.400.922 
654.994.622 

731.989.965 
779.724.674 
764.730.412 

616.049.654 
697.148.489 
849.941.184 
823.172.165 
903.320.948 
1.035.719.337 

134.379.363.510 


♦20.2O6.15ll 
19.012.041 
2O.703.O9X 
2*.10».S72 
1.I.04S.720 
47.»*».872 
&8.374.S36 
81.2*4.71* 
al.S37.4tl 
78.U85.023 
7*. 971 .78* 
ilS.02t.61S 
71.957.144 
66.800.0S3 
T7.«»».0T4 
95.6S8.021 
101.650.988 
108,343.1511 

„ SmmS 

06.767,970 
61.31S.S12 
38.627.230 

27.856.017 
6,927. Ml 
52.61.7.763 
81.S20.062 

87,671. 569 
9S.381.1S3 
70,142,521 
S9.eal.669 
64.696.873 
Ml.. 150. 101 
U8.S26.04S 
HX.972.106 
•0,788 SSS 
73.890.789 
74.80*4147 
64.021.210 
67.4S4.66t 
71.670.736 
73.396.662 
81.630.608 
87.638,732 

102.260.216 
110.215.X02 
134.838.704 
111.448.137 
104.978.570 
112.251.873 
123.668 832 
111.817.471 
*9.877,»96 

X2.S20.CS* 
106.745.X32 

ioe.OM.iii 

109,583,348 

156.741.598 
138.190.516 
140.361.172 
144.376.720 
1x8.916.269 
166,984.231 
203.489.282 
2S7.04S.764 
2lb.900.50S 
281,819.428 
298.823.7*0 
273.011,274 
292.902.061 
.133,676.067 
219.553.833 
190.670.501 
203.964.447 
158.837.088 
166.029.303 
.148.859.523 
294.506.141 
281,902.899 
286.117.697 
392.771.768 
442.830.178 
444.177.586 
522.479.922 
586.283.040 
513.442.711 
540.384.671 
602.475.220 
694.865.766 
710.439.441 
835.638.658 
902.377.346 
750.642.257 
83.1.839.402 
740.513.609 
743.189.755 
679.524.830 
716.183.311 
695.954.507 
742.401.375 
857.828.684 
884.480.810 
1.030.278.148 
847.665.194 
892,140.572 

807.538.16", 
XX2.606.938 
1.050.993.556 

1.231.483.330 
1.287.033.302 
1.394.483.082 
1.487.704.991 
1.381,719.401 
1.480.141.679 

S37.863.335.440 


♦3.794.S44 
10.1X7,969 
I0.7M.M2 
4.W0.42S 
1.6*6.276 
31.7M.SM 
22.HS1.6S9 

'7M*',tm 
403.S2U 
J0.380X" 
18.343.9** 
4.S7..18* 
8.SM.6SS 

26;0S.1>79 
27.873.*37 
SO.lOO.Xill 
S4.660.V40 
7.1M.TS7 
18.042.0.10 

M.oiri'w 

*,0ST.5*i> 

66.483.521 
60,1X3.948 

11.078.4.11 
28.4UX.KU7 
16.1W3.479 
4.758.SS1 





1790 

17*1 

17*2 

IT** .., 

17*4 

IT** ._ 

17** 

17*7 

17*8 

17»* 

ixtt 

1M1 

18*2 .... 

1803 

18*4 

1X*6 

18*7 '.'"".'.'.'. 

1808 

180* 

181* .„ 

1811 

1812 

IXIS 

1814 „ 

1816 

1816 

1817 

1818 




Wuhlnjton (Apr. SO. 
1T89, to Mar. 4, 1T*T). 

John Adams (Mar. 4. 
1797. to Mar. 4. 1801). 

Jaffonon (Mar. 4. 1801. 
to Mar. 4. 180S) .'. 




. Foruiatlvopwlod. 


MadUon (Mar. 4. 1809, 
lo Mar. 4. 1817; 


•7.MU.8S2 
6,801,017 


1 Protective tariff 

V (Joljr 1. 1813. to Job* 

J SO. 181*). 











n,«H 




to Mar. 4, 1820 


1X20 

1*21 

1X22 


Low tariff (June so. 




18,031.6*4 
.4.l6a,.128 
3.197.097 










J. Q. A. lam« (Mar. 4. 
1826. to Mar. 4, 1x29) 


V64V.023 

umjm 


1825 

1X2S 




6,303,723 






182X 


16.9*8.873 


1828 

1X29 

18S* - 


Trotcetlr. tariff (Jna* 
so. 1824. to Mar. 8. 
1XSS). 




346.736 
8,949.77* 








1831 

1882 

1855 

1834 

1830 

1856 

'18J7 

1888 

188* 

18*0 

' 1841 

1843 

184S 

1844 


28.689.627 
13.001.15il 
18,619,211 

lt.:H!l.4R6 
21,648,49:1 
02.240.400 
19.029.07B 


JiirkaoB (Mar. 4. )--"■>. 


%$£&& 


lx:;2 

18SS 

18S4 

1836 

1880 

18.17. 

1S3X 

1839 

1840 

1X41 

1X42 

1843 




Van Rnren (Mar. 4. 

1837, to Mar.4, 1841).. 


. Low tariff (Mar.i.lMS. 


44.245.88S 






26.410.22il 

"iss;»M 

40.392.220 
3.141.220 

84.S17.249 




W. H. Harri«on-Tyl« 


11.140.071 




4.1846) ., 














7.144.811 
8,3*0,817 


1845 

18« 

1847 

1K4X 

1M9 

I860 .'. 


f (A OK. .10. li«s,toD*c. 


I'olk (M»r. 1. 1846. to 


1846 




Low tariff* (Dai. 1. 
1 184*. to Apr. J. 1S«I). 


Tajlor-Filloio™ (Mar. 




10.448.129 
XOT..027 
291S3.800 
21.X5tS.l70 
40.466,107 
60.387.91*! 
60.760.030 
38.890,306 
39.313.887 
64.604.582 

38,43'i!29t 

20.040,063 
69.756.709 




























1X.VI 

1864 

1850 

1X56 

1867 

1868 

186* 

1860 

1861 

18S3 

1363 

1864 ...... 

18*5 

1866 

1867 

I8S8 

1869 

1870 

1871 

1873 

1873 ....... 

1874 

1875 

1X86 

1877 .... 

1878 

I8T9 

1880 

1881 

I8B2' 

1X83 

1X84 

18K5 

18X6 ...... 

1887 

mas ;;;"' 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1899 ..:::. 

1900 

1901 

1908 

1903 




Mar 4.1857) 


1864 


Low tarlffa (Dm. 1. 
184U. to Apr. 1. 18*1). 






*mSm 


Buchanan (Mar. 4. 
1867. to Mar. 4. Ixtsl). 


' 1867 

1868 

1859 

18*0 

"1861 

1862 

1863 

1864 

1865 

1866 

1867 

. 1868 

1870 '.'..'.'.. 

1871 

187* ....... 

1873 

1874 

1875 

, 1876 

1877 

1878 

1879 .. . 

1880 . .. 

1881 ... . 

1882 ... . 

1883 

, 1884 

1885 

1887 ;:;;:: 

. 1888 

1889 

1890 

1891 

. 1891 

1893 

1894 

1895 ... . 

. 1896 

1897 

1898 

1899 

' 1901 .'.'.'.'.'. 

1908 

1903 .. . 




Uncoln-Johnson 
(Mar. 4. 1861. to Mar. 
4.1899) 


♦ l.SIS.834 




39.371 .36X 
I57.609.29.-. 
72.716.877 
80.952.544 
101.254.955 
75.483.S41 
131.3X8,683 
43.186.640 
77.4011.506 
1X2.417.191 
119.656.28X 

"" 19.562.725 






































Urant (Mar. 4. 1869. to 
Mar. 4. 1877) 










i8.876'.0»8' 




Haves (Mar. 4. 1877. to 
Mar. 4. 1881) 

Oartleld-Arthur 
(Mar. 4. 18X1. to Mar. 


79.643.481 
151.153.094 
257.814.834 
364.661.666 
167.683.912 
259.712.718 

85.902.683 
100.658.488 

72.815.916 
' 164.662.426 

44.088.694 

83.863.413 


Protective tariff* 
U,,M.,„,. W A«* 






Cleveland (Mar. 4. 
1885. to Mar. 4. 18x9) 

Benjamin Harrison 
(Mar. 4. 1889. to Mar. 










jw.tmow 

2.780.877 








68.518.375 
39.564.614 
803.875.686 

837.i45.950 

76.568.300 
102.882.264 
386.363,144 

615.433.676 
539.874,813 
544.541.898 
664.593.886 
478.398.453 
394.488.443 

•3.584.071.930 




Cleveland (Mar. 4. 
1893. to Mar. 4.1x97). 


18'.735.728' 


I Low tariff (Aug-. 88. 
J- 1894. to July 84. 1897). 


1897. to Sept. 14.1901) 




i Protective tariff 








Roo«evelt (Sept. 14, 






Total 







THE TARIFF. 



69 



! expenditures of the United Stake Government from 1791 tol90S. 

(From official reports at U» Unite! SUM rtovert 




70 THE BRITISH I \UIIK. 

THE BRITISH TARIFF. 

[Hon. J. T. McCleary, of Minnesota, in Congressional Record.] 

Since "LS40 Great Britain lias collected her duties on imports 
under the policy advocated by the' Democratic party. Let us see 
how the policy is operated there and what the results are. 

For the information at those who may not have convenient 
access to the Statesman's Year Book, I submit the following table 
Showing the sources of revenue of the government of Great 
Britain for national purposes for the fiscal year ending March 31, 
1908, the latest for which data can be had. (In the Year Book 
the amounts are expressed in pounds sterling. A pound sterling 
is worth a few cents less than $5. For convenience of compu- 
tation I have called it exactly $5 in translating the English money 
into American money for the purposes of this table.) 

Customs duties: 

Duties on exports— coal $9,958,835 

Duties on imports: 

Tobacco 62.257,365 

Tea 29,877,410 

Sugar, glucose, etc 22,393,535 

Grain, etc 1 1,733,980 

Rum ■ 11,149,365 

Wine 7,619,280 

Brandy 6,405,57r> 

Other spirits 6,143,965 

Raisins 1,024.555 

Coffee 893,140 

Cocoa 774,605 

Currants 577,620 

Other articles 1,495,120 

Total revenue from customs duties 172,304,350 

Excises: 

Spirits 90,821,795 

Beer 66,319,450 

Other sources 3.598.115 

Total revenue from excises 160,739,360 

Estate, etc., duties: 

Estate duties 48,501,810 

Legacy duty 15,008.965 

Succession duty 4.828.365 

Corporation duty 219,235 

Total revenue from estate duties, etc 68558.375 



Stamps (excluding fee stamps, etc.): 

Deeds 19499,915 

Receipts 7,642,3 1 5 

Bills of exchange 3.498.545 

Companies' capital duty 3123,795 

Patent medicines 1,666,855 

Insurances 1437,745 

Bonds to bearer 1,051 , 145 

Licenses, etc 858,685 

Other sources 21319,015 



Total revenue from stamp taxes 41*093,015 

= 

Land tax 3803,770 

House duty $168,855 

Property and income tax 193^29,230 

Total revenue from taxes 648J966.455 

The above does not include the revenue received from the nost- 
office and the telegraph, from the crown lands, from interest on 
Suez Canal shares owned by the British government, from fee 
stamps, from the mint, from the Bank of England, and from 
various other sources, amounting in all to $108,103,490, nonejof 
which can properly be regarded as taxes. 

Thus the grand total of national revenue in the British Isles rpr 
the fiscal year ending March 31, 1903, from all sources except 
money borrowed, was $757,067,945. * 

It is to be remembered that these are the revenues of the 
national government for meeting national expenses, such as in- 
trest on the public debt, the support of the army and the navy, 



THE BR] MM l I ABIFF. 7| 

and for civil administration, including the post-office and the tele- 
graph, It does not include the sums raised for local purposes, 
except a few small sums, mainly those in the way of government 
aid to schools. Nor does it include sums raised for the support 
of colonies, most of the colonies being self-supporting, and many 
of them being practically self-governing. 

I have given these figures simply because in Great Britain is 
found the best exemplification in the world of "a tariff for reve- 
nue only," the goal toward which our Democratic brethren pro- 
fess to be headed. 

Several things are noteworthy. / 

In the first place, considering only national taxation proper 
(omitting direct payments to the government for direct services, 
like the postal revenues and such things), the total national reve- 
nues of Great Britain amounted last year in round numbers to 
$048,000,000, or about $10 per capita, while in the United States 
they amounted to $284,479,582 from customs, $230,810,124 from 
excises, and about $3,000,000 from other sources — in all to about 
$518,000,000, or less than $6.50 per capita. That is, with twice 
as maay people we collected for national purposes $130,000,000 
less tlan did Great Britain. In other words, our taxation for 
national purposes is considerably less than half as heavy in' pro- 
portion to population as that of "free trade" England. 

By the way, in these indisputable facts there is very little com- 
fort for those who have a sort of vague notion that free trade as 
illustrated in Grjeat Britain would in some way mean freedom 
from taiation for national purposes. As a matter of fact, investi- 
gation shows that the cost per capita for the support of our na- 
tional government is smaller than that of any other civilized 
country in the world. 

In tie second place, it will be noted that the customs duties in 
Great Britain, including the export duty collected on coal, amount 
to about $4.30 per capita, while in this country the total amount 
of custons duties amounts to only about $8.50 per capita. 

In tie third place, the table above reveals how few are the 
articles going into Great Britain upon which the tariff duties are 
collected ; that is, how few are the articles the like of which 
they dc not produce in Great Britain, and consequently the enor- 
mous amount that must be produced on each of those few items. 
As a result, the rates of duty in Great Britain are very greatly 
higher than those in the United States. 

In the fourth place, it will be noted that many of these articles 
on which these enormously high rates of duty are laid are what 
may je regarded as necessaries of the poor man's table — tea, sugar, 
raisiis, coffee, cocoa, currants, etc. So that it is evident that the 
poor man feels every day as a great burden the British policy of 
"a tariff for revenue only." 

At a matter of fact, our people simply would not tolerate in 
timet of peace such burdensome taxation on the necessaries of 
life. 

Customs Tariff of the United Kingdom. 

[Retirn showing- the several articles subject to import and export 
dities in the United Kingdom, and the duty levied upon each 
aricle, according- to the tariff in operation upon the 1st of Au- 
gist, 1903, together with an account of customs drawbacks and 
cistoms charges. — Official,] 

Import Duties. Rates of duty. 

Articles. £ s - d - 

B<er of the descriptions called Mum, Spruce, 
or Slack Beer and Berlin White Beer, and 
otler preparations, whether fermented or 
no fermented, of a character similar to Mum. 
Sjruee, or Bl*ck Beer, where the worts 
ttureof were, before fermentation, of aspeci- 
fk gravity- 
Tot exceeding 1215° ] £°JS2K f ' 1S ° 

Exceeding 1215° : 1M7 6 

Ber of any other description where the 

worts thereof were, before fermentation, 

of a specific gravity of 1055° 8 

And so on in proportion for any dif erence 
h gravity. 
Jards, playing the doz. packs a 9 



THE BRITISH TAUIKK. 



Articles. 
Chicory:— 

Raw or kiln-dried 

Roasted or ground 

Chicory (or other vegetable substances) 
and Coffee, roasted and ground; mixed.... 

Chloroform 

Chloral hydrate 

Cocoa 

Husks and shells 

Cocoa or chocolate, ground, prepared, or 

in any way manufactured 

Cocoa butter 

Coffee 

Kiln-dried, roasted, or ground 

Collodion 

Ether acetic 

butyric 

sulphuric 

Ethyl bromide 

' chloride 

" iodide 

Fruit, dried, or otherwise preserved without 
sugar: — 

Currants 

Pigs and fig cake, French plums and prunel- 
loes. dried plums not otherwise described, 

prunes and raisins 

Note.— Tinned and bottled apricots in 
syrup or water, and apricot pulp, are not 
liable to duty as preserved plums. 

Apricots, crystalized or glace, are not 
embraced in this exception, and must 
therefore be assessed to duty at the rate 
of 7 s. the cwt. 

See fruit liable to duty as such pre- 
served with sugar. 

Green figs preserved in water to which 
no sugar has been added, are assessed 
to duty at 7 s. the cwt. on the weight of 
figs without squeezing out the contained 
water. 

Plums include apricots, greengages, 
and mirabellas. 
Fruit liable to duty such as preserved with 
sugar^see sugar. 

Glucose, solid 

liquid 

Molasses and invert sugar and all other sugar 
and extracts from sugar which cannot be 
completely tested by the polariscope and on 
which duty is not otherwise charged :— 
If containing 70 per cent or more of sweet- 
ening matter 

If containing less than 70 per cent and more 

than 50 per cent of sweetening matter. . 

If containing not more than 50 per cent of 

sweetening matter 

Saccharin and mixtures containing saccharin, 

or other substances of like nature or use 

Note.— Saccharin and mixtures containing 
saccharin or other substances of like na- 
ture or use must not be imported into 
the United Kingdom in packages con- 
taining less than 11 lbs., and must not be 
packed with goods of any other descrip- 
tion, and must be specially reported and 
imported and entered for warehousing 
at the following ports only:— 

Dover, Folkstone, Goole, Grangemouth, 

Grimsby, Harwich, Hull, Leith, London, 

Newhaven, Southampton, and West 

Hartlepool. 

Soap, transparent, in the manufacture of 

which spirit has been used 



Spirits and strong waters:— 
For every gallon computed at hydrometer 
proof of spirits of any description (except 
perfumed spirits) including naphtha or 
methylic alcohol, purified so as to be pot- 
able; and mixtures and preparations con- 
taining spirits:— 
Enumerated spirits: 

Brandy the proof gallon 

Rum^. 

Imitation rum 

Geneva 

Additional in respect of sugar used in 
sweetening any of the above tested for 
strength, if sweetened to such an ex- 
tent that the spirit thereby ceases to 
be enumerated spirit. ..the proof gallon 
Unenumerated spirits: 

Sweetened the proof gallon 

(Including liqueurs, cordials, mixtures. 
and other preparations containing spirits, 
if tested.) 



the cwt. 
the lb. 



the cwt. 
the lb. 

the cwt. 

the lb. 
the gallon. 

the lb. 
the gallon. 

the lb. 
the gallon. 



the oz. 



the lb. 



Imported in 

casks. 



Kates ol 




duty. 


£ 


s. 


(1. 





13 


:< 








2 


b 





2 


o 


1 


8 





1 


4 








1 





2 











2 








1 





II 











2 


1 


8 


8 


II 


1 


11 





It! 


5 


1 


1 


5 





i 


1 





10 


5 





1 


8 



2 
2 



2 9 
l 

10 



1 3 



Importedn 
bottles 
£ s. 






11 


4 





11 


i 





11 


5 





11 


5 









IS 
12 
12 
it 


1 








2 





12 


7 



THE BRITISH TARIFF. 



73 



Articles. 

Not sweetened the proof gallon 

(Including liqueurs, cordials, mixtures, 
and other preparations containing spirits, 
provided such spirits can be shown to be 
both unenumerated and and not sweet- 
ened; if tested.) 
Liqueurs, cordials, mixtures, and other pre- 
parations containing 1 spirits in bottle, en- 
tered in such a manner as to indicate that 

the strength is not to be tested 

the liquid gallon 

Perfumed spirits 

Any importations of naphtha or methylic al- 
cohol purified so as to be potable are taken 
under the heading of unenumerated spir- 
its. 
The minimum legal sizes of packages of 
spirits (other than spirits imported in cases) 
is in casks or other vessels of a size or content 
of not less than nine gallons. . 

Upon payment of the difference between 
the customs duty and charges on foreign spir- 
its, and the excise duty on British spirits, for- 
eign spirits may be delivered under certain 
conditions for methylation or for use in art or 
manufacture. 

Sugar:— 

Not exceeding 76 degrees of polarization. . . 

Exceeding 76 and not exceeding 77 

77 " " 78 

78 " " 79 

79 " " 80 

80 " " 81 

81 " " 82 

82 " " 83 

83 " " 84 

84 " " 85 .-. 

85 " " 86 

86 " " 87 

87 " " 88 

88 " " 89 

89 " " 90 

90 " " 91 

91 " " 92 



97 



Blacking, liquid, containing sugar or any 

other sweetening matter ~ . . . 

(Together with the duty on any proof 
spirit contained therein.) 
Note.— An additional %d. a lb. is chargeable 
in respect of any of the undermen- 
tioned sugar articles in the manu- 
facture of which spirit has been 
used. Confectionery in the manu- 
facture of which a greater per- 
centage of spirit has been used than 
that covered by the spirit charge of 
Md. the lb. shall be chargeable with 
a spirit duty rate of Id. the lb., or 
such spirit duty rate as analysis 
may show to be necessary. 
Blacking, solid, containing sugar or any other 

sweetening matter 

Candied or drained peel 

Caramel, solid 

liquid 

Cattle foods, on the entry for which the im- 

' porter declares that duty on the quantity 

of sweetening matter used in the manuf ac- 

ture of goods did not exceed the rate of 

•" 6d. the cwt 

Cattle foods, other cattle foods containing 

molasses or other sweetening matter 

Cherries, drained, imported in bulk 

Chutney 

Cocoanut sugared ...... 

Confectionery containing chocolate, viz. :— 
When the chocolate exceeds 50 per cent of 

the total net weight 

"When the chocolate does not exceed 50 per 

cent of the total net weight 

Confectionery, hard, such as : — 
Caraway seeds, &c 



Imported in 

casks. 
£ s. d. 
12 5 



the cwt. 



Imported in 

bottles. 
£ s. d. 
11 5 



16 4 
19 1 



Rates of duty. 
£ s. d. 
2 
9 
2 
9 
2 
9 
2 





0.8 

1.6 

2.4 

3.2 

4.0 

4.8 

5.6 

6.5 



"2 7.4 



8.3 
9.2 
10.2 
11.2 
0.4 
1.6 
2.8 
4.0 
5.2 
6.4 
7.6 
8.8 
10.0 
2 



1 



1 

3 

4 2 

3 











6 











1 

2 
2 
2 



3 




the lb. 








2 


" 








VA 


he cwt. 





4 


2 



74- I in BR] I [SB i Mill I . 



Articles. 

Confectionery, soft, viz. :— 

A. B. Cuius imported in bulk, in barrels or 
cnses. on the entry for which the import- 
er has declared that duty on the com- 
bined quantity of sugar and glucose used 
in the manufacture of the goods did noi 

exceed the rate of 2s. the cwt the cwt o 5 

Confectionery, other A. B. gums, caramels, 

ehewing gums, jelly beans, Turkish delight. 

&c I) 3 

Confectionery made from sugar and contain- 
ing no other ingredients except flavoring. .. 4 2 
Confectionery, Licorice— if declared by the 

importer not to contain more than 30 per 

cent of added sugar or other sweetening 

matter, subject to occasional sampling and 

testing l 3 

Flowers, as violets and rose petals, &c, in 

crystallized sugar, as crystallized fruit 4 2 

Fruit* canned and bottled, other than fruit 

liable to duty as such, preserved in thin 

syrup 1 u 

Fruit canned and bottled, other than fruit 

liable to duty as such, preserved in thick 

syrup 2C 

Fruits,* crystallized, glace and metz. except 

fruit liable to duty as such 4 2 

Fruits, imitation crystallized (orange and 

lemon slices, &c.) 4 2 

Fruit, liable to duty as such, except currants. 

preserved in sugar, or otherwise, whether 

mixed with other fruit or not 7 

Fruit* pulp, excepting fruit pulp liable to duty 

as such, preserved in thin syrup 1 

Fruit* pulp, excepting fruit pulp liable to 

duty as such, preserved in thick syrup, as 

jam the cwt. 3 

♦Note. — Tinned and bottled apricots in 
syrup or water, and apricot pulp, are 
exempt from duty as preserved plums, 
and when containing added sugar, are 
charged with the proper sugar rate of 
duty as fruit canned or bottled, or fruit 
pulp in thick or thin syrup, as the case 
may be. Apricot jam is chargeable with 
duty at the rate of 3s. the cwt. 

Apricots, crystallized and glace, are not 
exempt from duty as preserved plums. 

Green figs preserved in syrup, are as- 
sessed to duty at 7s. the cwt. of figs with- 
out squeezing out the contained syrup, 
and in respect of the syrup according to 
its rating of Is. the cwt. if thin, and 2s. 6d. 
the cwt. if thick. 

Boxes of mixed fruits, such as "Metz 
fruits, assorted." and bottles "assorted 
fruits in syrup," containing articles liable 
to two or more distinct rates of duty are 
assessed to duty on the highest rate for 
the whole weight, but if the various kinds 
of goods are packed separately, or in such 
a manner that an account can be taken of 
each kind, the goods are assessed to duty 
accordingly. 

Ginger, preserved in syrup or sugar 3 

Marmalade, jams, and fruit jellies, if not <# * 

made from fruit liable to duty as such 3 

Marzipan 2 6 

Milk condensed, sweetened, whole 1 8 

Milk condensed, sweetened, separated or 
skimmed 2 

Milk condensed slightly sweetened, whether 
whole, separated or skimmed, if declared 
by the importer not to contain more than 
18 per cent, of added sugar, subject to oc- 
casional sampling and testing .0 9 

Milk Powder:— 

If declared by the importer not to contain 
any added sugar Free 

If declared by the importer not to contain 
more than 36 per cent, of added sugar the cwt. 1 6 

In all other instances, and in cases in whioh 
the importer wishes to dispense with sam- 
pling and testing ° 3 4 

Note.— Importations entered as free will be 
delivered on deposit of duty at the Is. 6d. 
rate, pending analysis. Importations en- 
tered at the Is. 6d. rate are liable to sampl- 
ing and testing. 

Nestle's Milk Food 1 3 

Soy, when containing molasses or other 

sweetening matter 1 ° 

Sugared Almonds:— 

On the entry for which the importer had 
declared that the sugarcoating does not 
exceed 72 per cent, of the total net weight 3 



THE BRITISH TARIFF. 



Rates of dut.v 
Articles. £ s. d. 

In all other instances the cwt. 4 2 

Importations entered at 3s. rate are liable to 
sampling-, and are to be occasionally 
sampled and tested. 
Tamarinds, preserved in syrup 10 

Other preparations made with added sugar ) ) Charged under 

or sweetening matter (other than sac- > >Sec. 7, Finance 

charin) ) ) Act, 1901. 

Tea the ft. 6 

Tobacco, manufactured, viz. :— 

Cigars the ft. 5 6 

Cavendish or Negrohead -.---. 4 4 

Cavendish or Negrohead, manufactured in 
bond 3 10 

Other manufactured tobacco, viz.:— 

Cigarettes 3 10 

Other sorts 3 10 

Snuff containing more than 131bs. of moisture 
in every 100 lbs. weight thereof 3 7 

Snuff not containing more than 13 fts. of 
moisture in every lOOfts. weight thereof.. 4 4 

Tobacco unmanufactured, viz. :— 

Containing 10 fts. or more of moisture in 
every 100 fts. weight thereof . . '. 3 o 

Containing less than 10 fts. of moisture in 

every 100 fts. weight thereof 3 1 

Note.— The minimum weight of packages 

of tobacco allowed to be imported into the 

United Kingdom is not less than 80 fts. gross 

weight. Packages of tobacco must contain 

tobacco only, and under tobacco are in- 
cluded cigars, cigarillos, cigarettes, and 

snuff. 
Wine :— 

Not exceeding 30° of proof spirit the gallon 1 3 

Exceeding 30° but not exceeding 42° of proof 
spirit 3 i» 

And for every degree or part of a degree 
beyond the highest above charged, an ad- 
ditional duty (i 8 

The word "degree" does not include frac- 
tions of the next higher degree, 

Wine includes lees of wine. 
Additional :— 

On still wine imported in bottles 1 o 

On sparkling wine imported in bottles 2 6 

Export Duty. 

Coal, cinders, etc., exported, viz:— 

Coal and culm the ton 1 

Coke and cinders 1 

Fuel, manufactured 90 per cent 

A rebate of the duty is allowed on coal, of export duty 

the value of which, free on board, exclusive on coal, 

of duty, is proved not to exceed 6s. per ton; 
and on fuel, the coal ingredient of which is 
proved not to be of a higher value than 6s. 
per ton. 

I. — General Customs Order No. 18, of 18th of February, 1904, Con- 
taining a List of Customs Duties and Drawbacks. 

The list published in this Order, embracing all the changes in 
the Customs Tariff of the United Kingdom, up to 18th February, 
1904, is a reproduction of the seventh edition of said Tariff (No. 2). 
and first Supplement, as issued by the International Customs 
Bureau, save the following exception: 

The following item has been inserted: 

£ s. d. 
Sugar candy the cwt. 4 2 

II. — New Rate of Duty on Tea and Additional Rates of Duty on 
Certain Descriptions of Tobacco. 

[General Customs Order No. 40, of 18th of April, 1904.] 

In pursuance of a resolution to be proposed in the House of 
Commons on the 19th instant, in lieu of the customs duty now 
payable on tea the following duty is to be charged on and after 
Wednesday, the 20th instant, and until the 1st of August, 1905, viz.: 

£ s. d. 
Tea ..the lb. 8 

Under a further resolution to be proposed on the same date, 
in addition to the duties now payable on tobacco of the following 
descriptions under Section 1 of the Finance Act, 1898, and Section 
2 of the Finance Act, 1900. the following duties are to be levied 
on and after the 20th instant, viz.: 

£ s. d. 

Cigars the lb. 00 6 

Cigarettes do. 010 

Tobacco, unmanufactured— 

If stemmed or stripped the lb. 3 



7G 'ill!. BRITISH i \i:n i 

The actual duties payable on these descriptions of tobacco on 
and after the 20th instant will, therefore, be as follows: 

Xs. (I. 

Cigars the lb. <> 6 o 

Cigarettes t u>. i m 

Tobacco, unmanufactured: 
If stemmed or stripped— 

Containing lOlbs. or more of moisture in ererj 100 lbs. 

weight thereof .the lb. o 3 3 

Containing less than io u>s. of moist ore in e\ ery iui n>s. 
weight thereof .'the lb. 3 7 

These increased duties will be leviable on all tea and tobacco 
of the specified descriptions entered on or after Wednesday the 
20th instant, in accordance with Section 7 (2) of the Finance Act, 
1901, and on tea and tobacco, previously entered, which are lying 
in bonded warehouses on that date. 

It should also be noted, with reference to the Customs Code, 
paragraphs 3 and 486, that all tea and tobacco in respect of which 
duty has been paid at the present rates, but which have not been 
delivered from bonded warehouses on the morning or the 20th in- 
stant, will be liable to the difference of duty hereby involved. 



The hum of industry has drowsed the voice of calamity and 
the voiee of despair is no longer heard in the United States, and 
the orators wthout occupation here are now looking to the Philip- 
pines for comfort. As we opposed them when they were standing 
against industrial progress at home, we oppose them now as they 
are standing against national duty in our island possession in the 
Pacific President McKInley. 

I am a protectionist because facts confront us, not theories. 
I have seen the wage-earners of Great Britain and continental 
Europe; know how they live; that they are homeless and landless 
as far as ownership is concerned; that they are helpless and hope- 
less as to any brighter future for themselves or their children; 
that in their scant wages there is no margin for misfortune and 
sickness, pauperism being the .only refuge. — Hon. William P. Frye. 

Luxuries to the European laborer are necessities to the Ameri- 
can. — Senator Frye, In the American Economist. 

The farmer of the West has learned a»d the farmer of the 
South ought to learn that when the factory is closed he not only 
loses customers for his products, but also meets additional com- 
petitors in his production. The workman, losing his employment 
in the factory, settles upon a truck farm and becomes a producer 
of the products he formerly bought from the farmer. The pros- 
perity of the farmer depends upon the prosperity of those who buy 
his products. — Hon. P. P. Campbell, in Congress, April 1, 1904. 

The job hunts the man, not the man the job. When that con- 
dition exists labor Is always better rewarded. — President McKinley. 

The depression and ruin that was inaugurated with that tariff 
revision by the Democratic party is vivid in the minds of all. — Hon. 
P. P. Campbell, in Congress, April 1, 1904. 

A tariff for revenue only resulted in cheaper wool, cheaper 
bread, cheaper everything; there was no doubt about that; but did 
cheapness produce happiness, as they said it would? No; it pro- 
duced misery, just as we said it would. — Hon. M. N. Johnson, in 
Congress, March 24, 1897. 

L.et us keep steady heads and steady hearts. The country is 
not going backward, but forward. American energy has not been 
destroyed by the storms of the past. — President McKinley before 
Manufacturers' Club, Philadelphia, June 2, 1897. 

Experience of more than forty years in business has taught 
me that under a low or revenue tariff business depression and 
financial distress has been the rule, while under protection gc Jd 
business and general prosperity has been the result. — Hon. N. D. 
Sperry, 31. C, of New Haven, Conn., in the American Economist. 

A condition of prosperity came with the policy of protection 
and a condition of adversity came when the theory of free trade 
was yielded to and this has been without an exception. — Hon. P. 
P. Campbell, in Congress, April 1, 1904. 

We have lower interest and higher wages, more money and 
fewer mortgages.— President McKinley. 



IBON AND STEEL INDUSTRY. f 7 



THE,IRON AND STEEL INDUSTRY IN THE 
UNITED STATES. 



The development of the iron and steel industries furnishes am- 
ple proof of the great benefit of a protective tariff. Before the 
Revolutionary War Great Britain would not permit these indus- 
tries to become established in her American colonies. Everything 
was done to develop manufacturing in the British Islands, but the 
object was to prevent the colonists from manufacturing for them- 
selves in order to compel them to take what was produced in 
England at whatever prices the home producers might charge. In 
1750 a hatter shop in Massachusetts was declared a nuisance by 
the British Parliament. In the same year an act was passed per- 
mitting the importation of pig iron from the colonies because 
charcoal, then exclusively employed in smelting the ore, was well 
nigh exhausted in England. But the erection of tilt-hammers, 
slitting or rolling mills, or any establishment for the manufacture 
of steel was prohibited. A law of Virginia to encourage textile 
manufactures in that province was annul led in England. Lord 
Chatham declared that "the British colonists of North America 
had no right to manufacture even a nail for a horseshoe." 

The act passed in regard to manufacturing iron and steel read 
in part as follows : "No mill or other engine for slitting or rolling 
of iron, or any plating forge to work with a tilt-hammer, or any 
furnace for making steel, shall be erected or, after such erection, 
continued in any of His Majesty's colonies in America." A heavy 
fine was provided for any person using any such "mill, engine, 
forge or furnace," as mentioned in the act. That act was enforced 
down to the beginning of the Revolution. The export of wool and 
woolens from the colonies was forbidden and the transportation 
of iron wares, linens, woolens, paper, hats, and leather from one 
colony to another was forbidden, and even the exportation of hats 
was stopped. The importation of foreign iron into England was 
stopped by excessive duties, and the colonists were compelled to 
buy such articles as they might need, not produced at home, en- 
tirely from the merchants and manufacturers of England, and, 
besides, were compelled to sell their produce exclusively in Eng- 
lish markets. Those were the conditions that led to the Revolu- 
tion, and which left the colonies without any manufactures. 

Early Beginnings of the Industry. 

One of the first acts of the American Congress provided for a 
protective tariff, though it was a mere beginning in that direction. 
British legislation from that time forward was designed as before 
to prevent as much as possible the growth of manufacturing in 
the United States. In 1816 Lord Brougham, in a speech in Parlia- 
ment advocating the increased exportation of British goods to the 
United States, declared that "it was well worth while to incur a 
loss upon the first exportation in order by the glut to stifle in the 
cradle those rising manufactures in the United States which the 
war had forced into existence contrary to the natural course of 
things." By means of differential duties in favor of imports in 
English vessels the British shipping was favored. In 1819 iron 
imported into England in British ships paid a duty equivalent to 
$32.50 a ton and if it came in a foreign ship it had to pay $39.62 
a ton. A large number of articles were absolutely prohibited from 
entering British ports, or were subjected to duties one-half their 
value. In all this legislation special efforts were made to protect 
the British iron and steel industry. 

Rapid Development Under Protection. 

After the Revolution the iron and steel industries of the United 
States slowly and spasmodically developed, though foreign com- 
petition was severe. A great deal of the time down to the begin- 
ning of the Civil War the duties on iron and steel were not suf- 
ficient to afford adequate protection. With the enactment of the 
Morrill protective tariff in 1861, and with the added stimulus of 
the Civil War, the iron and steel industries entered upon a period 



78 IKo.S \M» SI I I I I Mil SI KV. 

of extraordinary development which with some Interruptions has 
continued to fhe present time, greatly surpassing the development 
of like Industries in any other country. In 1860 the United States 
produced 821,223 tons of pig iron and in 1890 the production 
reached 9,902,708 tons, and in 1903 was over 18,000,000 tons. 

Operation of Democratic and Republican Tariff*. 

During the time of the Democratic tariff act, owing to the 
depression in business, the production was much less than it was 
under the McKlnley tariff law. In the year 1894 only 6,657,388 
tons of pig iron were produced, which was nearly 3,000,000 tons 
less than were produced in 1890, and in 1896 the production was 
600,000 tons loss than it was in 1890. But under the Dingley law 
the production rapidly increased until it reached the total of 
18,000,252 tons in 1903. Great Britain last year produced only 
9,000,000 tons, or less than one-half the product of the United 
States, while Germany produced 10,000,000 tons. In five years tfaJ 
production of pig iron in the United States Increase^ seventy-five 
per cent ; in the United Kingdom eleven per cent, and in Germany 
forty-three per cent. Germany and the United States each have a 
protective tariff, while England is practically on a free-trade basis. 

Conditions in United States Compared with Other Countries. 

The world consumed in 1902 of pig iron 44,557,901 tons, of 
which forty per cent was, made in the United States. The same 
great development is shown in the production of steel, of which 
the United States produced 15,000,000 tons in 1902; Geramny 
7,700,000 tons and Great Britain 5,000,000 tons. The United 
States produced 2,300,000 tons more than Germany and Great 
Britain combined. In 1889 the United States produced 7,603,642 
tons of pig iron, which at that time was the largest production 
ever made in this country in one year. Great Britain produced 
in that year 8,322,824 tons, and she had exceeded the production 
in the United States in each preceding year. But under the Mc- 
Kinley tariff the production of pig iron increased to 9,202,703 
tons in 1890, in which year the product in Great Britain fell off 
to 7,904,214 tons. Since that time the United States has doubled 
its production while Great Britain has just about held its own. 
Germany, which went under a protective tariff in 1879, pro- 
duced only 4,524,558 metric tons (2,204 pounds) of pig iron in 
1889; but in 1900 Germany had increased the production so that 
her pig iron product was almost the equal of that of Great Brit- 
tain, and in steel she exceeded Great Britain. In 1902 Germany 
produced of Bessemer and open-hearth steel 7,664,158 tons, while 
Great Britain produced only 4,909,067 tons. The United States 
produced 14,826,092. 

Effect of Protective Tariffs Upon the Steel Rail Industry. 

The development of the steel rail industry in the United 
States has been of enormous benefit to the country, and has 
demonstrated beyond question the great value of the protective 
tariff. When it was proposed in 1870 to place a duty of $28 a 
ton on steel rails the Hon. S. S. Marshall, a prominent member 
of the House of Representatives, earnestly protested against the 
proposed duty because, as he alleged, it would so increase the cost 
of foreign steel rails that our railroad companies could not afford 
to import them. The average price of Bessemer steel rails in 
this country at that time was $106.75 a ton in currency. The 
duty of $28.00 a ton was imposed in that year, and the price 
of steel rails fell in five years to. an average of $68.75 a ton, and 
they never rose above those figures, but steadily fell in most of 
the succeeding years. The reduction in price, owing to the de- 
velopment of this industry, has led to the substitution of steel 
for iron rails, which are no longer manufactured to any extent. 
The durability of steel rails is many times greater than that of 
iron rails, and this has enabled the railroads to increase the size 
and power of their engines and cars, so that the cost of transpor- 
tation has been enormously reduced. The United States long 
since became the largest producer of steel rails in the world. 
Great Britain long ago having fallen behind^ Formerly a large 
percentage of the rails in use were iron. Now they are practical- 
ly all steel. The tariff on steel rails in 1870 was 45 per cent ad 



IRON AND STEEL INDUSTRY. 79 

valorem. That has been gradually i educed until now it is $7.84 
a ton. In 1902 the production of steel rails in the United States 
amounted to 2,935,392 tons. 

Results of British Investigations — Profits of Labor Under Protection. 

British investigations into a large number of British and 
American industries, details of which were published in Cham- 
bers' Journal and in the London "Times," gave this result: put- 
ting the joint product of labor and capital at 100 parts, in Eng- 
land, fifty-six parts go to labor, and in the United States seven- 
ty-two parts. The Illinois Steel Company, in which an investiga- 
tion was made as to the labor cost of producing various articles, 
established the fact that of the entire cost of pig iron seventy- 
seven per cent went to labor and twenty-three per cent for ma- 
terials; of ingots, labor got seventy-nine per cent and the ma- 
terials cost twenty-one per cent; and of steel rails labor received 
eighty per cent and the materials cost twenty per cent; and part 
of the cost of materials was due to labor. Labor secures a larger 
proportion now than ever before. Common labor gets on the 
average $1.50 a day in iron and steel mills in this country; in 
Great Britain it is paid from seventy-five to ninety-five cents a 
day, while on the continent of Europe it is paid fifty cents or less 
a day. 

Findings of the Moseley Labor Commission. 

The Moseley Labor Commission, which was composed of lead- 
ing Workmen in various British industries, made a thorough in- 
vestigation of similar industries in the United States. The re- 
port of the Commission on its return to England stated that the 
pay of blast furnacemen in the United States was forty per 
cent higher than in England, while iron founders received more 
than twice as much in the United States as in England ; iron 
and steel workers received pay vastly greater than in England, 
some rollers in this country receiving as high as $5,000 per an- 
num, while heaters received from $7.00 to ?13.00 a day. The pay 
of Engineers in the United States was given as seventy per cent 
higher than in Great Britain, while cutters received 100 per cent 
more in this country. It was stated that the wages of other work- 
men compared as follows: Cotton spinners, $16.66 per week in the 
United States and $9.50 in England ; tailors, 100 per cent higher 
in the United States; bootmakers, thirty to seventy per cent 
higher; leather workers, ninety-five per cent higher; bricklayers, 
three and one-half times more in the United States than in Eng- 
land; plasterers, 100 per cent more; carpenters, $18.50 in New 
York and $6.87 in London; lithographers, $30.00 in New York 
and $11.25 in London; bookbinders, $20.00 in New York and 
$9.00 in London. Those are the figures given after investigation 
by British workmen, and were published in Great Britain. 

Cost of Living. 

The vastly higher wages in the United States are not ac- 
companied by any increase in the cost of living. Mulhall, the 
well-known English statistician, says that the cost of living on 
the same quantity of food for each man is as follows: In Great 
Britain, eleven shillings ($2.75) per week; United States, ten shil- 
lings; Germany, nine shillings; France, eight shillings. If an 
American workman lived on the same quantity of food as an 
Englishman, it would cost him less, according to so good an 
authority as Mulhall, than it costs the British worker. 

Labor- Saving Machinery. 

Great improvements have been made in labor-saving ma- 
chinery in this country, but that machinery is not confined to the 
United States. In some of the modern steel mills less than one 
cent per ton is paid to a roller for rolling steel rails, whereas 
he formerly received fifteen cents a ton, but he makes as much 
money now at this low price as he did before at the high price. 
Edwin S. Cramp, Vice-President of the Cramp Shipbuilding Com 
pany, in his testimony before the Congressional Commission in- 



80 1KO.S AMI B7 mi. imm SI ky. 

vestigating the shipping question, told how the exportation of 
Labor-saying machinery has long been a marked feature of the 
exports of this country. Mr. Cramp said: 

"The argument which you have hoard urged so often, that the 
American mechanic can <1<> nana than the English mechanic, and 
that the introduction and application of labor-saving deviaes en- 
ables the American to increase his output very largely over that 
of England, does not hold good. The same labor-saving devices 
that we have introduced and applied in America are being intro- 
duced and applied in every shipyard in Great Britain, so that the 
amount of work a man can do there is increasing, and will con- 
tinue to increase. At the same time we are paying double the 
wages — from 50 to 100 per cent more — than is being paid in Eng- 
land for the same labor." 

Thus any advantages which Americans have in the way of 
labor-saving machinery are to be found in mills in nearly all 
foreign countries. Mr. J. Stephen Jeans, Secretary of the Brit- 
ish Iron Trade Association, presented to the tariff commission 
appointed by Mr. Chamberlain, and now investigating that ques- 
tion in England, an exhaustive review of the iron trade in that 
country. He declared that Great Britain furnished all the ad- 
vantages of the general proximity of ores and fuel, but that the 
British iron and steel industries suffered severely from a want 
of confidence in their future. He said: 

High Tariff, High Wages, and High Efficiency go Together. 

"The higher wages paid in the United States is coincident with 
the higher efficiency of labor, which, however, is not necessarily 
unapproachable in this country (Britain)." 

Mr. Jeans stated that 
"a tariff does not in the iron and steel trade prevent a nation from 
attaining and maintaining the highest industrial efficiency." "The 
tariff policy of our competitors by guaranteeing within large limits 
the monopoly of the whole market, and what is perhaps of greater 
importance, keeping the home market from sudden and violent 
breaks, must promote continuity in running." 

Mr. Jeans stated that in the last ten years under free trade 
the British iron production had little more than held its own, 
while the American output trebled in the same time under a pro- 
tective tariff. Britain, he said, was also beaten in steel, the form 
in which iron now finds its most important use. England has 
a 33 1-3 per cent preference in Canada in the way of lower duties, 
and yet the United States sells to Canada four times as much 
iron and steel in various forms. The British output of manufac- 
tured iron in 1903 was the lowest since 1850. The Bessemer steel 
output in that year was 154,000 tons less than in 1882. 

Purport Prices — Why Lower Thnn Home Prices? 

Much has been said about United States manufacturers sell- 
ing iron and steel and other products abroad lower than at home. 
Iron and steel at home are sold at prices fixed by competition, 
and the law of supply and demand. No corporation has a mon- 
opoly of their manufacture. The United States Steel Corporation 
does not control one-half of the iron and steel capacity of the 
United States, and the number of independent companies is con- 
stantly increasing. The price of steel rails was maintained at 
$28.00 a ton as a result of the work of the steel corporation when 
much higher prices could have been obtained. The policy of 
the corporation, as stated by its officers, was to try to make 
money by reducing the cost of production, not by advancing the 
price to the consumer. 

In 1893, under the Cleveland administration, there was a great 
depression in the iron and steel industry, and prices were ab- 
normally low and unremunerative; wages in the iron trade were 
also greatly reduced. Soon afterwards there was developed a 
boom in the iron and steel industries of Great Britain and Ger- 
many and their prices went up. That was an opportunity for the 
American manufacturers of which they took advantage. A seri- 
ous and prolonged strike in Great Britain subsequently broad- 
ened this opportunity, Foreign orders for iron and steel became 
so numerous that exports of those articles exceeded the imports 
for the first time in 1893. When the prices of iron and steel re- 
covered in the United States under the Dingley tariff law there 
was a shrinkage in the foreign demand, ana prices abroad, and 
the exports of iron and steel necessarily declined. In fact, the 



IRON AND STEKL LNOUSTKY. 8l 

home demand brought large importations. At the present time 
a shrinkage in the home demand has led to increased exportation. 
The large importations in 1902, $41 ,408,820, show that the man- 
ufacturers in the United States do not control their home market. 
Foreigners sell their products here much below the prices they 
receive at home. German syndicates pay an export bounty to the 
members of their organizations, and their returns as published 
show large losses on their foreign trade. This, they explain, is 
necessary to keep their mills going and maintain prices at home. 
English newspapers complain that German iron and steel are 
sold in large quantities at lower prices in British markets than in 
Germany. The importation of such a large quantity of iron and 
steel in 1902 shows that the Dingley rates of tariff duties in this 
country are not too high, since if they were lowered these imports 
would be-enormously increased. 

The foreigners have a great advantage in shipping their pro- 
ducts to the United States. What are termed tramp vessels 
call at our ports in large numbers for grain, petroleum, and coal 
as return cargoes. That these vessels may be properly ballasted 
on the inward voyage they gladly accept all such heavy products 
as iron and steel at merely nominal freight rates, frequently as 
low as $1.00 a ton, and sometimes as low as twenty-five cents a 
ton, the American manufacturers having to pay much higher 
rates on the railroads to/ reach important points of consumption 
on the coast are at a disadvantage. German iron and steel man- 
ufacturers make a regular practice of selling abroad much lower 
than at home, and Englishmen do the same to a smaller extent. 

Canada pays a bounty of $3.00 a ton on pig iron produced 
in that country, and a bounty of $3.00 a ton on steel ingots. 

What the Industrial Commission Found as to Low Export Prices. 

The United States Industrial Commission, after an investiga- 
tion, found that a very small percentage of the goods exported 
from the United States are sold cheaper abroad than at home. 
But this only happens in years of depression. When lower prices 
have been charged abroad than at home the inducement to do 
this has been to dispose of a surplus, or to secure entrance into 
a desirable foreign market, or to retain a foothold in a foreign 
market that' had already yielded profitable returns. These rea- 
sons for the occasional cutting of prices require no defense. 
Even in years of prosperity it sometimes happens that a rolling 
mill or steel works, when running to its full capacity, produces 
a surplus of its products beyond the immediate wants of its 
production by stopping the mill or discharging a part of the 
employees. It is cheaper to keep the men employed and sell 
this surplus at cost if necessary than it would be to stop the 
works temporarily. The manufacturer can produee cheaper 
when his plant is running full than when it is partly stopped. 
Our tariff legislation has encouraged manufacturers to seek for- 
eign markets by remitting nearly all of the duties levied on im- 
ported raw materials when these raw materials enter into the 
manufacture of exported finished product. Under the operation 
of this drawback system some products can be fhanufactured for 
sale abroad at a lower cost than they could be supplied to home 
customers. If this surplus can be sold abroad, even at prices 
below current quotations, it is better than to reduce customers. 
Great Britain a Competitor in Low Export Prices. 

Great Britain early pursued this course of selling abroad 
cheaper than at home. In T81G Lord Brougham, in a speech in 
Parliament advocating the increased exportation of British goods 
to the United States, declared that "it was well worth while to 
incur a loss upon the first exportation, in order by the glut to 
stifle in the cradle those rising manufactures in the United States 
which the war had forced into existence." In 1854 a British 
parliamentary commission reported as follows: "The laboring 
classes generally in the manufacturing districts of this country 
and especially in the iron and coal districts, are very little aware 
of the extent to which they are often indebted for their being 
employed at all to the immense losses which their employers vol- 
untarily incur in bad times in order to destroy foreign competi- 
tion and to gain and keep possession of foreign markets." That 
is the kind of competition our manufacturers have to meet. 



^'J IICO.N \M> Sllll. I.NDl SI'UY. 

Prominent I'.nu I ImIi men \'«»!<>c ltepublioiiu Sentiments. 

Premier Balfour, of the Knglish Cnhinet, deehiivd in B speeeh 

last October that the developments of the Last half century "had 
made rrea trade an empty mime and a vain farce." Eie said: 

"I eonfess thai when 1 heat eritieism upon the American and Ger- 
man policies which caused these great industrinl nations to a<- 
company their marvelous commercial expansion with protective 
dUtkfa which must have thrown a most heavy burden upon the 
consumer. 1 feel that they have a retort to which I at least have 
no reply. Free trade is Indeed an empty name and a vain farce." 
The London "Statist*" in an article referred to the fact that 
under protection the united states "has made more remarkahle 
progress than perhaps any other country in the world." It then 
refers to England and India, under free trade and states that 
"India has remained poor and famine stricken." In England 
more than 2,000,000 acres of wheat land have gone out of cultiva- 
tion in half a century and 1,000,000 fewer men are employed 
on the land. In the production of manufactured products, taking 
in the producing nations of the world, Great Britain has fallen 
from forty-five per cent to less than thirty per cent in the last 
quarter of a century, while the United States has enormously in 
creased in the same time. General Booth, head of the Salvation 
Army in London, stated after an examination in 1890 that there 
were 2,000,000 paupers in Great Britain and 1.000,000 more persons 
who were nearly paupers. Former Secretary Chamberlain of the 
British Cabinet has olaced the number of paupers in Great Brit- 
ain at 4,000,000. 

Production and Prices of Bessmer Steel Ralls In the United States. 

The following table gives the annual production in gross tons 
of Bessemer steel rails in the United States from 1867 to 1903. 
together with their average annual price at the works in Penn- 
sylvania and the rates of duty imposed by our Government at 
various periods on foreign steel rails. Prices are given in cur- 
rency. 



[Note the pyramid of production, the inverted pyramid of prices, 
and the reduction in the duty.] 



• Years. 


Gross tons. 


Price. 


Duty. 


1867 


2,277 

6.451 

8.616" 

30,357 

34.152 

83.991 

115.192 

129.414 

259.699 

368,269 

385.865 

491,427 

610,682 

852,196 

1,187,770 

1,284,067 

1,148.709 

996,983 

959,471 

1,574,703 

2.101.904 

1.386,277 

1.510.057 

1,867.837 

1,293.053 

1.537.588 

1.129,400 

1,016,013 

1.299,628 

1,116,958 

1,644,520 

1,976,702 

2,270,585 

2,383,654 

2,870,816 

2.935,392 

2,873,228 


$166.00 
158.50 
132.25 
106.75 
102.50 
112.00 
120.50 
94.25 
68.75 
59.25 
45.50 
42.25 
48.25 
67.50 
61.13 
48.50 
37.75 
30.75 
28.50 
34.50 
37.08 
29.83 
29.25 
31.75 
29.92 
30.00 
28.12 
24.00 
24.33 
28.00 
18.75 
17.62 
28.12 
32*29 
27.33 
28.00 
28.00 




1868 


,45 per cent ad valorem to January 1, 


1869 


' 1871. 


1870 




1871 




1872 




1873 




1874 




1875 


$28.00 per ton from January !, 1871, 


1876 


to August l. 1872; $25.20 from Au- 


1877 


gust 1. 1872. to March 3. 1875; $28.00 


1878 


from March 3, 1875, to July 1, 1883. 


1879 




1880 




1881 




1882 




1883 


1 


1884 




1885 


.$17.00 per ton from July 1, 1883, to 
October 6, 1890. 


1886 


1887 


1888 




1889 




1890 




1891 


.$13.44 per ton from October 6. 1890, 


1892. ...-. 


to August 28, 1894. 


1893 




1894 




1895 




1896 




1897 




1898 


l $7.84 per ton from August 28. 1894. to 


1899 


date. 


1900 




1901 




1902 

1903 






B '-.. 



1K0JN AiNU STEEL INDUSTRY. 



83 



Advance in Prices of Iron Ore. 

The following table, furnished by the editor of the Iron Trade 
Review, an accepted authority, shows the prices of iron ore from 
1898 to 1903. It will be seen that the advances in the raw ma- 
terial have been very great and account in part at least for the 
advance in price of the finished article, which is also affected in 
price by the advance in wages during the same period. 

[Furnished by Mr. A. I. Findley, editor of the Iron Trade Review.] 



Grades. 



Mesabi Bessemer 

Mesabi non-Bessemer.. 

Marquette specular: 

No. 1 Bessemer 

No. 1 non-Bessemer.. 

Chapin 

Soft hematites, No. 1 
non-Bessemer 

Gogebic, Marquette and 
Menominee No. 1 Bes- 
semer hematites 

Vermilion No. 1 hard 
non-Bessemer 

Chandler No. 1 Besse- 
mer 

Marquette extra low- 
phosphorus Bessemer 



$2.15 to $2.25 
1.70 to 1.85 

3.10 to 3.35 

2.35 to 2.45 

2.56 

1.80 to 2.00 



2.75 to 2.95 
2.50 
3.13 
3.65 



1900. 



$4.40 to $4.90 
4.00 to 4.25 

5.93 to 6.48 
5.00 
4.96 

4.15 to 4.25 



5.50 to 5.75 
5.10 
6.00 

6.80 to 6.90 



$3.00 ® $3.25 
2.60© 2.85 

4.65® 5.00 

3.80® 4.00 

3.91 

3.00® 3.25 



4.65 
4.07 
4.50 
5.40 



$4.00 



$4.85® $5.15 
4.00® 4.25 



The base price for 1900 of "old range" Bessemer ores, those 
from the Marquette, Menominee, Gogebic, and Vermilion ranges, 
have been fixed at $5.50, against $2.95 in 1899. 



Even supposing that a high tariff is all wrong, it would work 
infinitely better for the country than would a series of changes 
between high and low duties. — President Roosevelt* in his Life of 
Benton, p. 224. 

The Republican party Stands now, as it has always stood and 
always will stand* for sound money with which to measure the 
exchanges of the people? for a dollar that is not only good at 
home, but good in every market place of the world.— Major Mc- 
Kinley to Young Men's Republican Club, June 26, 1896. 

The real evils connected with the trusts can not be remedied 
by any change in the tariff laws. The trusts can be damaged by 
depriving them of the benefits of a protective tariff only on con- 
dition of damaging all their smaller competitors and all the wage- 
workers employed in the industry. — President Roosevelt at Cincin- 
nati, September 20, 1902. 

I yield to no Senator, I yield to no Republican in my attach- 
ment to the doctrines of the Republican party. I believe that -when 
the platform was adopted at St. Louis it was a warrant to be ex- 
ecuted honestly, fearlessly, faithfully, and I am here, Mr. Presi- 
dent, to execute it to the best of my humble ability.— -Hon. C. W. 
Fairbanks, in U. S. Senate, May 20, 1897. 

If there is any one quality that is not admirable, whether in a 
nation or in an individual, it is hysterics, either in religon or in any- 
thing else. The man or woman who makes up for ten days' indif- 
ference to duty by an eleventh-day morbid repentance about that 
duty is of scant use in the world. — President Roosevelt at Boston, 
Mass., August 25, 1902. 

All the prosperity enjoyed by the American people— absolutely 
all the prosperity, without any reservation whatever — from the 
foundation of the United States Government down to the present 
time, has been under the reign of protective principles; and all the 
hard times suffered by the American people in the same period 
have been preceded either by a heavy reduction of duties on im- 
ports or by insufficient protection, thus refuting all free-trade 
theories on the subject. As I desire my native land to be on the 
apex of prosperity, rather than under the heel of hard times, I am 
a protectionist. — David H. Mason, in the American Economist. 



84 i in i i\ Pi \ n: ixnrsTBT. 



A tariff which protects American labor and industry and-pro- 
vides ample revenues has been written in public law. 

• —william Mckinley. 

THE TIN-PLATE INDUSTRY. 



Established Under McKinley Protection. Checked by Democratic 
Free Trade, It has Effected a Saving: of $35,000,000 to the Conn- 
try and Now Gives Employment to 17,000 People* Who Earn 
$10,000,000 a Year in Wages. 

By B. E. V. LUTY, Pittsburg-. 

The American tin-plate industry is the best illustration of the 
benefit of a protective tariff. It is for this reason that it is singled 
out by the Democrats for especially vicious attack. _ 

The McKinley protective duty of 2.2 cents a pound went into 
effect on July 1, 1891. For years prior to that time there was a 
revenue tariff on tin plate of one cent a pound. Under it no tin 
plate could be made in the United States, our supply being all 
imported from Wales, which had a monopoly. The Welsh manu- 
facturers had an understanding among themselves which amounted 
to a trust, and charged exorbitant prices. The duty, being a reve- 
nue one, was paid by the American consumer. The reduced duty 
of 1.2 cents in the Wilson-Gorman law went into effect on October 
1, 1894, and caused a wage dispute which kept all the American 
tin-plate works closed from that date until the latter part of Jan- 
uary, 1895, when they were put in operation at greatly reduced 
wages. The American tin-plate works were then enabled to operate 
under the existence of the Wilson-Gorman tariff law because : 

Growth of the Industry. 

1. The industry had acquired great momentum under the Mc- 
Kinley law. 

2. Economies and new processes were introduced during that 
period, after great expenditures of time and money. 

3. There were heavy wage reductions. 

4. The Wilson-Gorman duty of 1.2 cents a pound was 0.2 cent 
higher than the old revenue duty. 

5. The general depression in the iron and steel and other 
industries, caused by the Wilson-Gorman law, brought the raw 
materials of tin-plate manufacture in the United States down to 
lower points than had ever been seen before. 

Five Hundred Mills Busy There. 

Up to July 1, 1891, when the McKinley tin-plate duty became 
effective, over 500 tin mills were kept in practically steady opera- 
tion in W T ales. Since then there has been a continuous succession 
of strikes and lockouts. The number of mills in operation has 
fallen below 300 at times, and prices of tin plate in Wales were 
brought down to a level formerly unknown. The Welsh tin-plate 
trust was completely broken up. The following table shows the 
decline in the Welsh tin-plate trade due wholly to the establish- 
ment of the American industry, while the partial revival since 
1898, due to the opening up of markets in other countries not pro- 
tected by a tariff, will also be noted: 

British Exports Decrease. 

Exports of tin plate from Great Britain to all countries since 
1887, in long tons: 

Year. Long- tons. 

1887 354,773 

1888 391,291 

1889 430,623 

1890 421,797 

1891 448,732 

1892 - 395,580 

1893 379,233 



TIfE TIN PLATE INDPSIKV. 85 

1804 354,081 

1805 365,082 

1806 266,055 

1807 271,230 

1808 250.053 

1800 256,620 

1000 272,877 

1001 271,320 

1002 312,206 

1003 -. 203,147 

The following table gives the imports of tin plate into the 
United States since 1880 in long tons: 

Year. Long tons. 

1880 331,311 

1800 320,435 

1801 327,8S2 

1802 268,472 

1803 2,13,155 

1804 215,068 

1805 210,545 

1806 1 10,171 

1807 83,851 

1808 67,222 

1800 58,015 

1000 \ 60,386 

1001 77,305 

1002 60,115 

1003 47,360 

Our Imports are Ndw Inconsequential. 

The great bulk of the imports in these later years was neither 
for domestic consumption nor subject to the duty, being known as 
"rebate" plates, on which the duty is refunded by the Government 
on the export of articles made from them, as will be explained 
more fully later. Deducting such rebate plates, the imports of 
tin plate for domestic consumption and subject to the duty have 
averaged, from July 1, 1807, to March 31, 1004, only 6,320 tons per 
annum, a wholly inconsequential quantity, and made up wholly 
of fancy plates sold under special brands. 

The following table gives the production of tin plate in the 
United States in each calendar year since 1801 : 

Year. Long- Tons. 

1801 552 

1802 18,803 

1803 55,182 

1804 74,260 

1805 113,666 

1806 160,362 

1807 256,508 

1808 326,015 

1800 , 307,767 

1000 302,665 

1001 300,201 

1002 306,000 

High and Low Prices. 

The following table shows the highest and lowest prices in 
Wales of full weight coke tin plate since 18S0. The great decline 
caused by the American industry will be noted. The much higher 
prices in 1800 and 1000 were caused by the great advances in raw 
materials, especially steel and pig tin, which have occurred all 
over the world : 

Year. Lowest. 

1880 12s 0d 

1800 . •. 13 3 

1801 12 

1802 11 

1803 10 10 V» 



Highest. 


ISs 


Od 


17 


3 


12 





12 


3 


12 


6 



Hi, i in i i \ ri \ i 1 i m.i BTB1 . 

L89d K) 3 11 

1895 !> 9 LO 9 

L896 6 LO% K» 6 

1S97 9 9 10 3 

1898 9 9 10 6 

1899 11 ii 15 

L800 L8 :i if. 9 

1901 12 3 15 3 

1902 11 9 14 

1903 • 11 12 6 

1904 (first half) 11 G 12 

The following table gives the average price paid for full weight 
coke tin plate at New York -each year since 1890 ; prices are Cor 
imported plates up to and including 1894 and for domestic plates 
since then : 

v 1890 $5.15 

1891 5.30 

1892 .vu 

1893 &I5 

1894 . 4.57 

1895 3.0(1 

1896 3.63 

1897 3.26 

1898 2.99 

1899 4.50 

11)00 4.82 

1901 4.34 

1902 4.27 

1903 * 4.07 

1904 (first half) 3.82 

On Juno 13, 1904, the current market price of tin plate was 
$3.45, f. o. b. mill, Pittsburg district, for 100-pound coke plates. 
This, with 15 cents extra for "full weight" (108 pounds) and 
freight to New York made the price of full weight plates in New 
York $3.79. 

A Saving; of $35,000,000, 

By making a careful estimate of what tin plate would have 
cost the consumer from the beginning of 1892 to the middle of 
1900 had there been no American industry and no protective tariff, 
and closely calculating what it actually has cost in these years 
with the protective tariff and the American industry, it has been 
found that the country has saved to date fully $35,000,000 through 
the McKinley tin-plate industry. Most of this saving was due to 
the American product selling at so much below the imported, but 
part was due to the lower prices at which the foreign was sold, 
on account of the competition, before the country made all the tin 
plate it needed. 

Earnings Much Higher Than in Wales. 

The average weekly earnings of all employes in American tin 
mills are from two and a half to three times as much as in Wales. 
This is due mainly to wages being much higher per unit of output, 
but it is also in part due to the fact that there is a very much 
greater capital investment per unit of output in America than in 
Wales. The American manufacturer spends perhaps three times 
as much money in building his plant and this greater investment 
enables the men to turn out a greater product per week without 
greater exertion. 

Even per ton, however, American wages are much higher than 
the Welsh wages. Taking the wages being paid in American mills 
in June, 1904, the comparison stands as follows, for the single 
branch known as the hot-mill labor, this being only one step in 
'the process of tin plate manufacture : 

Wales. United States. 

Roller and catcher $1.90 $4.60 

Doubler 1.16 2.26 

Heater 1.09 2.20 

Total $4.21 $9.06 



THE TIN PLATE INDUSTRY. 87 

Which shows that on these jobs American wages per ton are 
115 per cent, higher than in Wales. On account of the greater 
output, the actual weekly earnings are nearly three times as great 
as in Wales. 

Tin-Plate Is Cheap. 

Tin plate is cheaper in the United States now than it was at 
any time prior to the passage of the McKinley protective duty, and 
the present price at New York is only 27 per cent, higher than the 
lowest price on record at any time. 

The followinig is the cost, delivered New York, of the quanti- 
ties of tin plate required \o make the articles named, based on the 
open market in May and June, 1904 : 

Cents. 

Ordinary 2-lb. or No. 2 can 0.94 

Ordinary 3-lb. or No. 3 can 1.34 

Half-pint tin cup 0.79 

Quart tin cup 1.34 

3-qt. dinner pail 4.34 

3-qt. dinner pail, plus 1-pt. cup 5.26 

The famous dinner pail made of American tin, therefore, now 
costs only what the workman pays for an ordinary street car fare. 

Workmen Recognize Tariff's Responsibility for High Wages. 

In October, 1902, the Amalgamated Association of Iron, Steel 
and Tin Workers gave the clearest recognition that has ever been 
given of the fact that the tariff is responsible for the wages they 
receive. The condition was that while the American tin mills had 
captured practically all the demand for tin plate for domestic con- 
sumption, the Welsh manufacturers were still shipping in from a 
million and a quarter to a million and a half boxes (50,000 to 
65,000 tons) of tin plate, which was made into cans for exports 
of petroleum, fruit, fish, etc., and for some minor purposes. 
Through the operation of the general drawback law the Govern- 
ment, on the export of these commodities, paid to the exporters 
99 per cent, of the duty which had originally been paid on the tin 
plate so used. Thus the tin plate used in this "rebate trade" was 
practically duty free. The Amalgamated Association therefore 
made, in October, 1902, an arrangement with the American Tin 
Plate Company whereby they would work up plates intended for 
the rebate trade, at wages 25 per cent, less than the regular scale 
rate. It was recognized that this percentage did not represent the 
full concession needed to capture this remaining trade from the 
Welsh makers, but the company was willing to make up the bal- 
ance itself. 

The plan was put into practical operation by 3 per cent, of the 
men's total wages being set aside in a special fund, from which 
withdrawals are made as cans, etc., are exported, equal to 25 per 
cent, of the wages originally involved. This apparently compli- 
cated system was adopted partly because it would have been incon- 
venient to identify each lot of tin plate as it went through the mill 
as being intended for export purposes, and the safer plan was 
adopted of the wage rebate being payable just as the actual ex- 
ports were made. 

By this action the men recognized that the tariff was directly 
responsible for the wages they were receiving, and showed that 
they were willing, in competing with Welsh manufacturers operat- 
ing under no tariff, to make a concession in wages. 

To the middle of this year the amount of business done under 
this arrangement was not very large, as the mills were quite busy 
on strictly domestic business. In the past few months the rebate 
ousiness has assumed quite important proportions. 

f>»-i ,. 

I am a protectionist because our country has prospered with 
protection and languished without it. — Hon. B. F. Jones, in the 
American Economist. 

I believe in the doctrine of protection because the facts of our 
national experience thoroughly exemplify its truth. No great 
American statesman, except the half-forgotten leaders of the slave 
p«.»ver, have disowned the protective system.— Hon. J, P. DolUver, 
in the American Economist, 



88 l Hi: l i:\Tll.i-; INDUSTRY. 



THE TEXTILE INDUSTRIES OF THE 
UNITED STATES. 



How Labor and Agriculture Have Been Mutually Aided and Price* 
to the Consumer Reduced Under the Protective System. 



[By Edward Stanwood, author of "A History of the 

Presidency," "American Tariff- Controversies of 

the Nineteenth Century," Etc.] 

If one were asked to aesignate the American industries whicb 
may be regarded as the most conspicuous trophies of the pro 
tective policy the answer would undoubtedly be: textiles, iron 
and glass. The most dramatic conquest the policy can boast is 
in one branch of the iron and steel industry, namely, that of 
tin plates. Nonexistent in 1890, it gave employment in 1900 to 
nearly 15,000 workmen, and provided practically the whole sup- 
ply of tin plates for the immense canning industry of the coun- 
try at prices far below those which prevailed when the market 
was controlled , by foreigners. 

Nevertheless, the most important achievement of protection is 
the establishment and development of the mills in which is spun 
and woven the material of the clothing of the people — cotton, wool, 
and silk. 

The Father of his Country in his first annual address to 
Congress used the following language: 

"A free people ought not only to be armed but disciplined; to 
which end a uniform and well-digested plan is requisite; and their 
safety and interest require that they should promote such manu- 
factories as tend to render them independent of others for essen- 
tial, particularly military, supplies." 

Although clothing w s one of the articles indispensable in 
time of war, the manufacture of which it was obviously the duty 
of Congress to promote, it was not until after the war of 1812 
that a serious thought was given by Congress to the protection 
of the manufacture of cloth of any material. During the period 
of nonintercourse that preceded the last war with England 
it was found impossible to buy in the country $6,000 worth of 
blankets to supply the Indians. During the war the only way 
in which clothing could be procured for the soldiers of our Army 
was by importation secretly from the British provinces in viola- 
tion of law — a violation at which the Government was compelled, 
by the necessity of the case, to connive. 

After the war the country was flooded with foreign textiles, 
and the cotton manufacture which had been established under 
the protection of nonintercourse was brought almost to the verge 
of ruin. Then began the attempts to foster the cotton and woolen 
industries by means of a protective tariff, which, often inter- 
rupted, have continued to the present time. 

The Cotton Industry. 

Cotton manufacture has enjoyed fairly adequate protec- 
tion for three-quarters of a century. Even under the Walker 
tariff of 1846 the rate of duty was sufficient to give the home 
manufacturer fairly complete control of the market for the 
coarse and medium goods, which constitute by far the largest 
amount of goods consumed by the average family. Beginning 
with the Morrill tariff of 1861 adequate protection has at all 
times been given to almost all classes of cotton manufactures, 
and the results have been a great growth of the industry, a 
large employment of labor, and an increasing market for the raw 
product of southern plantations. Keen domestic competition and 
improved machinery have reduced the prices of goods enor- 
mously. Thus every interest connected with this industry, di- 
rectly or indirectly, has been benefited— the manufacturer and 
his employees, the southern planter, and the whole population 
of the country, because all are consumers of the products of 
cotton mills. In recent years the United States has begun the 



THE TEXTILE INDUSTRY. 



89 



conquest of foreign markets. An export trade established before 
the civil war reached in 1860 almost $11,000,000. It did not 
touch those figures again until 1878, nor did it greatly exceed 
them until 1896, when the value of cotton goods exported was 
almost $17,000,000. Since then the increase of the trade has 
been rapid. In 1903 the value of cotton goods exported exceeded 
$32,000,000. It was smaller in 1904, owing to the abnormal price 
of raw cotton, which caused a demoralization in this branch of 
the textile industry throughout the world. 

The accompanying table shows the progress made by this 
industry during the last thirty years under a policy of unin- 
terrupted protection, for the Wilson tariff of 1894, harmful to 
other manufactures, did not materially reduce the protective duties 
on cotton fabrics. 



1890. 



Number of establishments.. 

Capital 

Wage-earners, average num 

ber 

Total wages 

Cost of materials used 

Value of products 

Active spindles, number 

Looms, number 

Cotton consumed, bales 

Cotton consumed, pounds.. 



973 

$460,842,772 

297,929 

$85,126,310 

$173,441,390 

$332,806,156 

19,008,352 

450,682 

3,639,495 

1,814,002,512 



905 
$354,020,843 

218,876 

$66,024,538 

$154,912,979 

$267,981,724 

14,188,103 

324,866 

2,261,600 

1,117,945,776 



756 
$208,280,346 

174,659 

$42,040,510 

$102,206,347 

$192,090,110 

10.653,435 

225,759 

1,570,344 

753,343,981 



956 
$140,706,291 

135,369 

$39,044,132 

$111,736,936 

$177,489,739 

7,132.415 

157,310 

398,308,257 



The Woolen Industry. 

The voyage of the woolen industry has been through seas 
much more stormy than those over which the cotton manufac- 
turers have passed. The difficulties which have beset it have 
arisen largely by reason of the complication of protection of wool 
with protection of wool manufactures. The growers of wool 
have rightfully contended that they were as deserving of the 
fostering care of government as were the users of their product. 
The concession of their contention has resulted, naturally and in- 
evitably, in the requirement of a duty on finished goods which 
seems excessive to those w T ho are not aware of the peculiar 
circumstances of the case, and which has made the wool and 
woolen schedule of the tariff the vulnerable point always chosen 
by the opponents of protection as the best for an attack and 
the easiest to carry by assault. There have consequently been 
many interruptions and variations in the policy of protection, 
which have prevented the full and healthy development of the 
industry. At one time, in 1846, a blow was given to the manu- 
facturers by a tariff law which levied no higher duty on .finished 
goods than on raw wool. At another time, under the Wilson - 
Gorman act of 1894, the woolgrower was struck by a provision 
making wool duty free. 

Yet in spite of opposition and of a vacillating policy the 
woolen industry has grown to large proportions, taking ad- 
vantage of favoring laws to increase and gain strength, endur- 
ing adverse legislation as best it might, and holding itself 
ready to make a forward step again when conditions should 
permit. Although the inherent difficulties and the artificial 
difficulties resulting from the lack of a continuous and consistent 
policy have prevented the full development of the industry, and, 
in consequence, that unimpeded home competition which would 
bring prices down strictly to the level of the foreign article, 
yet the difference in price is not great. Upon many varieties 
of goods the price of American fabrics is as low as that of 
European fabrics of the same quality plus a rate of duty not 
higher than the average of a "revenue tariff." Protection has not 
placed the manufacturers of wool in a position so favorable as 
that of the manufacturers of cotton, but under the present tariff 
they are making good progress, and if the policy be continued 
they will be able to intrench themselves strongly in the home 
market, to the great advantage of American woolgrowers in a 
steady demand for their product at reasonable prices, and of 
200,000 wage-earners in continuous and remunerative employment, 



90 



i III. i I \ i ii i INDUS'! m . 



as well as of the whole American people in an abundant sup- 
ply of honest goods at fair prices. 

The main facts relating to the woolen and worsted indus- 
try and to the allied manufacture of hosiery and knit goods. 
covering the ascertainment at the last three censuses, are pre- 
sented in the following table: 



Number of establishments , 

Capital 

Wane-earners, average number. 

Total wages 

Cost of materials used 

Value of products 



2,835 

$392,040,3< 1 3 

242,495 

$82,292,444 

$232,230.98(5 

$392,473,050 



1890. 



2.489 
$290,494,481 
213,859 
$70,917,894 
$203,095,572 
$337,768,524 



2.089 
$159, 09 1.. sc.il 
161,557 
$47,389,087 
$164,371,551 
$267,252,913 



The Silk Industry. 

It is- not generally realized that under the operation of a 
protective tariff the United States has risen almost if not 
quite to the first rank among the silk manufneturing countries 
of the world. The census returns in 1900 showed that in that 
year the value of the silk manufacture of France was $122,- 
000,000 and that of the United States $92,000,000, and the rate 
of progress in this country was and is such that in all probability 
the relative positions of the two countries have been reversed 
and that this country now leads in this important manufacture. 

In 1870 exactly two-thirds, in value, of the American con- 
sumption of silk manufactures was of foreign importation. In 
that year the total value of silk goods imported and produced 
at home was $36,418,995, of which only $12,210,662 was domestic. 
In 1900 the valne of such goods consumed in the United Slates 
had increased almost fourfold and amounted to $133,807,184, of 
which four-fifths ($107,003,650) was of home manufacture. The 
value of imported silk manufactures increased less than 
$2,500,000 in the intervening thirty years; the value of the do- 
mestic manufactures increased from $12,200,000 to $107,000,000. 

The protective tariff created this industry in the United 
States at the same time that free trade killed the same in- 
dustry in Great Britain. Fifty years ago the silk manufacturer 
of England was great and prosperous. The British census of 
1851 showed that there were 117,000 hands employed in the King- 
dom in the silk mills. Even in 1879 it employed more than 
40,000 hands. The system of free imports has rendered it almost 
extinct. The value of goods produced in 1900 was but $15,000,- 
000 — less than one-sixth that of this country. The destruction of 
this industry by invited foreign competition is one "Of the chief 
points in Mr. Chamberlain's indictment of the free-trade policy. 

The beginning of a protective system for the silk manufac- 
ture was made in the tariff of 1864, but the excessive internal 
taxation during and subsequent to the war, the disorganization 
of labor, and the diversion of capital to more pressing needs 
prevented the introduction of the manufacture on a large scale. 
Indeed, although the percentage of growth of the industry be- 
tween 1870 and 1880 was large, it was not until the tariff act of 
1883 adjusted the rates in a satisfactory manner, making raw 
silk free and allowing an adequate protection on manufactured 
goods, that the industry began to assume large proportions. It 
will be seen from the following table that it gave employment 
in 1900 to more than 65,000 employees who earned wages of 
nearly $21,000,000. The table corresponds to those already given 
for the other industries. 



1900. 



1890. 



1880. 



1870. 



Number of establishments 

Capital 

Wage-earners, average number. 

Total wnges 

Cost of materials used 

Value of products 

Raw silk used, pounds 



483 

$81,082,201 
P5.416 
$20,982,194 
$62,406,665 
$107 256,258 
9,760,770 



472 
$51,007,537 
49,382 
$17,762,441 
$51 .004,425 
$87,298 454 
6,376,881 



$19,125,300 

31,337 

$9,146,705 

$22,467,701 

$41,033,045 

2.690,482 



$6,231,130 

6,649 

$1,942 286 

$7,817,559 

$12,210,662 

684,488 



THE TEXTILE INDUSTRY. 91 

The protective system is establishing the flax, hemp, aud jute 
industries. As compared with cotton, wool, and silk they are 
still of secondary importance, but are destined, if the policy be 
continued, to a large growth. 

What it Means to Labor. 

Iii the aggregate these several branches of the textile indus- 
try employed, in 1900, no less than 661,451 hands, who earned in 
wages the sum of $209,022,447, and the 4,312 establishments re- 
ported produced goods of the value of $931,494,566. The number 
of hands employed exceeded by more than 100,000 the total popu- 
lation in 1900 of St. Louis, of Boston, or of Baltimore. But it is 
always to be borne in mind, first, that on the average each wage- 
earner provides bread and meat, clothing, and lodging for not 
less than two persons besides himself; and, secondly, that their 
wages reach an ever-widening circle of persons engaged in other 
occupations — grocers, dry goods merchants, carpenters, and the 
like in the first instance,- railroads and their employees, farmers 
and planters, and an infinite numbe/ of others all the way be- 
tween the first and the last. 

What It Means to the Parmer. 

It is a most serious mistake to suppose that the effect of 
prosperity or of depression in the manufacturing, particularly in 
the textile, industry is limited to those employed in the mills 
and to their employers, or even to the communities and States 
in which the mills are located. The manufacturing communities 
in this country are wholly dependent upon the agricultural 
regions for their food. New England, for example, does not 
raise enough of any single article of food to supply its own 
people. Of the two staples, breadstuffs and meat, it does not 
raise the one-hundredth part of its need. It is therefore vitally 
important to the farmers of the West that the mill hands shall 
be steadily employed and that their wages shall be sufficient to 
enable them to purchase freely. Reduce the tariff, introduce 
foreign goods instead of domestic, diminish the demand for the 
products of our own mills, cut wages, close the mills or put them 
on short time, and you deal a blow directly at the great agri- 
cultural regions of the country. You restrict the consuming power 
of a community — including the wives and children of the opera- 
tives — almost equal in numbers to the population of Chicago, and 
you gain nothing in the form of a foreign outlet for your grain 
and your meat. 

The history of the textile manufacture in brief is this: A 
great industry has been built up by means of a protective tariff ; 
two-thirds of a million of hands have employment in the factories ; 
the country has become almost independent of a foreign supply of 
textile goods ; the growth of the industry has been accompanied 
by a steady and in the aggregate a great decline in prices, so 
that to-day the clothing of the people is not only cheap but nearly 
or quite as cheap, quality considered, as that of any other na- 
tion ; and in no branch of the industry is there a monopoly "trust" 
or the suspicion of a monopoly. No great fortunes have been built 
up in the textile manufacture. The conquest of the home mar- 
ket will be followed, if the wise policy be continued, by an en- 
trance into foreign markets, and by the leadership of the Unked 
States in all departments of this industry. 



Class appeals are dishonest; * * * they calculate to sepa- 
rate those who should be united, for our economic interests are 
common and indivisible. — Maj. McKinley to Commercial Traveling 
Men's Republican Club, September 26, 1896. 

Arraying labor against capital is a public calamity and an 
irreparable injury to both.— Maj. McKinley to Commercial Travel- 
ing Men's Republican Club, September 26, 1896. 

The only antitrust law on the Federal Statute books bears the 
name of a Republican Senator. The law creating an Interstate 
Commerce Commission bears the name of another Republican Sen- 
ator and all the law is being enforced by a Republican President. 
— Hon. E. L. Hamilton, in Congress, April 14, 1904. 



92 



THE TEXTILE INDUSTRY. 



The textile industries of the United States at decennial periods 1850 to /goo. 
[Compiled from census reports.] 







1 

u 




Number 












u 


Capital. 


of 
wage 


Wages. 


Cost of 
materials. 


Value of 
product. 




5 


a- 






earners. 










H 


fc 












Wool manu- 
















facture^) 


1850 


1,760 


$32,516,366 
42,849,982 


47,763 




$29,246,696 
46,649,365 


$49,636,881 
80.734,606 


i860 


i.ora 


59.522 


$13,361,602 




1870 


3,456 


132,382.319 


119,859 


40.357,235 


134.154,61 5 


217,668,826 




1880 


2,689 


159,091,869 


161.557 


47,389.087 


164,371,551 


267 252 913 




1890 


2,489 


296,494.481 


213.859 


70,917,894 


203.095,572 


837.768.524 




1900 


2.335 


392,040,353 


242,495 


82,292,444 


232,230,986 


392,473,050 


Cotton manu- 


















1850 


1.094 


74,500,931 
98,585,269 


92.286 
122,028 




34,835,056 
57.285,534 


61,869,184 
115,681.774 




I860 


1,091 


23,940,108 




1870 


956 


140,706.291 


135.369 


39,044.132 


111.786.986 


177.489.739 




1880 


756 


208.280,346 


174.659 


42,040,510 


182,206,347 


192.090,110 




1890 


905 


354,020,843 


218.876 


66,024,538 


154,912,979 


267,981,724 




1900 


1,055 


467,240,157 


302,861 


86,689,752 


176,551,527 


339.200,320 


Silk manufac- 
















ture 


1850 


67 


678,300 
2,926,980 


1,743 
5,435 




1.093,860 


1,809,476 




1860 


139 


1,050.224 


3,901,777 


6,607,771 




1870 


86 


6,231,130 


6,649 


1.942,286 


7,817,559 


12,210,662 




1880 


382 


19,125,300 


31,337 


9,146,705 


22,467,701 


41,033,045 




1890 


472 


51,007,537 


49,382 


17.762.441 


51,004,425 


87.298,454 




1900 


483 


81,082,201 


65,416 


20,982,194 


62.406,665 


107.256,258 


Dyeing and 
















finishing tex- 
















tiles 


1850 


104 


4.818,350 
5,718,671 


5,105 
7,097 




11,540,347 


15,454.430 
11,716,463 




1860 


124 


2,001,528 


5,005,435 




1870 


292 


18.374,503 


13,066 


5,221,588 


99,539.992 


113,017,537 




1880 


191 


26,223,981 


16,698 


6,474,364 


13,664,295 


32,297,420 




1890 


248 


38,450,800 


19,601 


8,911,720 


12,385,220 


28,900,560 




1900 


298 


60,643,104 


29,776 


12,726,316 


17,958,137 


44,963,331 


Flax, hemp and 
















jute 


18% 


162 


27,731,649 
41,991,762 


15,519 


4,872,389 


26,148 344 


37,313,021 




1900 


141 


20,903 


6,331,741 


32,197,885 


47,601,607 


Combined tex- 
















tiles 


1850 


3 025 


112,513,947 
150,080,852 


146 877 




76,715,959 


128 769,971 




1860 


3.027 


194,082 


40,353.462 


112,842.111 


214 740,614 




1870 


4,790 


297,694,243 


274.943 


86,565,191 


353.249.102 


520,386,764 




1880 


4,018 


412,721,496 


384,251 


105.050,666 


302,709,894 


532.673,488 




1890 


4,276 


767,705,810 


517,237 


168,488,982 


447,546,540 


759,262,283 




1900 


4,312 


1,042,997,577 


661.451 


209,022,447 


541,345,200 


931,494,566 



a. Includes hosiery and knit goods. 

Cotton production and manufacturing in the United States, also 
imports and exports of cotton manufactures. 

[From the Statistical Abstract of the United States.] 









Taken for home con- 












Total 
com- 


sumption. 


















Raw 


Exports 


Imports 
of manu- 














mer- 
cial 


By 

North- 


By 

South- 


Total. 


cotton 
imported. 


factures 
of cotton. 


factures 
of cotton. 






crop. 


ern 
mills. 


ern 
mills. 














Int 


housanc 


s of ba 


les. 




















Pounds. 









1884 


5,713 


1,537 


340 


1,877 


7,019.492 


$11,885,211 


$29,074,626 


p 


'1885 


5,706 


1,437 


316 


1.753 


5.115,680 


11,836.591 


27.197,241 


1886 


6,575 


1,781 


381 


2.162 


5,072,334 


13.959,934 


29.709,266 


1887 


6,499 


1,687 


401 


2,088 


3,924,531 


14,929,342 


28,940,353 


H* 


.1888 


7,047 


1.805 


456 


2,261 


5,497,592 


13,013,189 


28,917,799 


3 

P 


1889 


6,939 


1,790 


480 


2,270 


7,973,039 


10,212,644 


20,805.942 


1890 


7,297 


1,780 


545 


2.325 


8,606,049 


9,999,277 


29,918,055 




1891 


8,674 


2,027 


613 


2,640 


20.908,817 


13,604,857 


29,712,624 





1892 


9,018 


2,172 


684 


2,856 


28,663,769 


13,226,277 


28,323.841 


O <D 


'1893 


6,664 


1.652 


723 


2,375 


43,367,952 


11,809,355 


33.560.293 


1894 


7,532 


1.580 


711 


2.291 


27.705.949 


14,340,886 


22,346,547 


1895 


9.837 


2,019 


852 


2,871 


49,332,022 


13,789.810 


33.196.625 


a* 


.1896 


7.147 


1,605 


900 


2,505 


55,350,520 


16,837.396 


32,437,504 


Q 


1897 


8,706 


1.793 


999 


2,792 


51.898,926 


21,037,678 


34,429,363 


1898 


11.216 


2,211 


1,254 


3,465 


52,660,363 


17.024,092 


27.2G7.300 




1899 


11,256 


2,217 


1,415 


3,632 


50,158,158 


23.566,914 


32,054.434 




1900 


9.422 


2,047 


1,597 


3,644 


•7,898,521 


24,003,087 


41,296.239 




1901 


10,339 


1.964 


1,583 


3,547 


46,631,283 


20.272,418 


40,246,935 




1902 


10,768 


2,066 


2,017 


4,083 


98,715,680 


32.108.362 


44,460,126 




1903 


10,674 


1,966 


1.958 


3.924 


74.874,426 


32,216.304 


52,462.755 



THE TEXTILE INDUSTRY. 



93 



Relative Price of Cotton and Cotton Goods, 1880 to 1903 — A Greater 
Fall in the Finished Goods than in the Material from Which 
They Were Manufactured. 

This table gives the production and average annual price of 
raw cotton and the wholesale price of various grades of cotton 
goods in the New York market in each year since 1880. It will 
be seen that while the price of raw cotton in 1903 was practically 
the same as that of the earlier part of the period, the price of 
manufactures "is in every instance materially lower than at that 
time, the reduction in price of the goods being in most cases 
about 25 per cent, showing that the competition among the home 
producers has steadily reduced prices. 

Production and average prices of middling cotton, and the staple 
manufactures of cotton, in the New York market each year, 
from 1866 to 1903. . - . 

[From the Statistical Abstract.] 



Calendar years. 



.-3 

a 
o 

b 


u 
u 

a 


u 
S 

a 


u 

CD 

a 


V 

c3 f- 


u 

V 

a 


9 

'5 
u 

B 
B 


d 
o o 


a 


CO 

a 


CD 03 

co m 
.73 a 


8 

d 

h 


*1 

bra 


co ;>> 
p 




Sc» 


03 


o 
o 


% 


o3 

■d 


c3 

•a 


Hi 


fl 


o3 




a 


c3 


£ CO 

cd 


OQ 


P 




83 




2 




Bales. 


Cents. 


Cents. 


Cents. 


Cents. 


Cents. 


5,761,000 


11.51 


8.51 


8.51 


12.73 


7.41 


6,605,000 


12.03 


8.51 


8.06 


12.74 


7.00 


6,456,000 


11.56 


8.45 


8.25 


12.95 


6.50 


6,950,000 


11.88 


8.32 


7.11 


12.93 


6.00 


5,713,000 


10.88 


7.28 


6.86 


10.46 


6.00 


5,706,000 


10.45 


6.75 


6.36 


10.37 


6.00 


6,576,000 


9.28 


6.75 


6.25 


10.65 


6.00 


6,499,000 


10.21 


7.15 


6.58 


10.88 


6.00 


7,047,000 


10.03 


7.25 


6.75 


10.94 


6.50 


6,939,000 


10.65 


7.00 


6.75 


10.50 


6.50 


7,297,000 


11.07 


7.00 


6.75 


10.90 


6.00 


8,674.000 


8.60 


6.83 


6.41 


10.64 


6.00 


9,018,000 


7.71 


6.50 


5.60 


10.25 


6.25 


6,664,000 


8.56 


5.90 


5.72 


9.75 


5.25 


7,532,000 


6.94 


5.11 


5.07 


9.50 


4.90 


9,837,000 


7.44 


5.74 


5.69 


9.85 


5.25 


7,147,000 


7.93 


5.45 


5.48 


9.50 


4.66 


8,706,000 


7.00 


4.73 


4.75 


9.25 


4.70 


11,216,000 


5.94 


4.20 


4.10 


8.00 


3.96 


11,256,000 


6.88 


5.28 


5.13 


9.50 


4.25 


9,436,000 


9.25 


6.05 


5.95 


10.75 


5.00 


10,383,000 


8.75 


5.54 


5.48 


10.25 


4.62 


10,681,000 


9.00 


5.48 


5.52 


10.50 


5.00 


10,728,000 


11.18 


6.25 


6.37 


10.75 


5.00 



6j 

.22 



.a >> 
a£ 



1881 
1882 
1883 
1884 
1885 
1886 
1887 
1888 
1889 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 

4900 
901 
1902 



Cents. 
4.51 
3.95 
3.76 
3.60 
3.36 
3.12 
3.31 
3.33 
3.81 
3.81 
3.34 
2.95 
3.39 
3.30 
2.75 
2.86 
2.60 
2.48 
2.06 
2.69 
3.21 
2.84 
3.11 
3.25 



a Years ending August 31. 

b Including 1881 and since, the price of standard drillings are net; raw cotton 
prices are also net for the entire period. 



Protection has already made us the richest and strongest nation 
on earth, and under a properly restricted immigration will bring 
to us much that is most valuable in the population of other lands. 
— Senator Hoar, in the American Economist. 

By the policy of fostering American industries the development 
of our manufacturing interests have been secured; the inventive 
genius of our people has found a field; American labor has become 
the best paid, and consequently our laborers the best housed, 
clothed, and fed; and the wonderful development and progress in 
this country in all that makes a people great, have elicited the 
admiration of the civilized world. — Senator Cullom, in the American 
Economist. 

As a result in a large degree of our protective tariff system 
the United States has become one of the foremost nations of the 
world. — Hon. S. M. Cullom. 



•i I I'ROSPl R1TY. 



PROSPERITY. 

Prosperity among all classes of the population of the United 
States is so evident at the present time that no argument in sup- 
port of that fact is necessary. The fact is apparent. Yet the 
constant assertion of the opponents of the Republican party that 
the prosperity is not general and dors not roach to the masses 
of the people justifies the presentation of some facts and figures 
by which these false assertions may be readily answered and 
the real prosperity of the country and its people accurately 
measured. 

Prosperity Abroad Under Protection. 

Before taking up the question of prosperity at home, it may 
be well to consider what protection and free trade have done 
in producing prosperity or the reverse in the principal countries 
of the world. 

The great general rule that protection fosters domestic activ- 
ity and therefore domestic prosperity applies just as strongly 
to-day as it has all through the history of the various great com- 
mercial nations of the world. That protective Germany and 
the United States have developed a much greater prosperity dur- 
ing the past twenty years than free-trade England is now con- 
ceded even by the British themselves, and upon the prosperity of 
Germany and the United States are based the arguments now be- 
ing placed before the people of the United Kingdom in favor of 
the adoption of a protective system. 

GREAT BRITAIN ALONE UNPROSPEROUS. 

Right Hon. Joseph Chamberlain, a member of the British 
cabinet, secretary of state for the colonies, who in 1903 with- 
drew from his position to lead the fight in favor of a return 
to protection, says in a signed article prepared for the London 
Daily Telegraph: "It is not well with British trade. After a 
long period of success the policy of unrestricted free imports has 
now shown evident signs of failure. Our exports are stationary 
in amount and declining in character. We receive from our com- 
petitors a larger proportion of manufactured goods, and we send 
them a larger proportion of raw materials than we used to do. 
Our supremacy in what have always been considered our stand- 
ard industries has been wrested from us, or is seriously men- 
aced. One by one markets once profitable and expanding are 
closed to us by hostile tariff's. We have lost all power of bar 
gaining successfully for the removal or reduction of these bar- 
riers to our trade." « 

Sir Arthur Balfour, the premier of the British cabinet, prime 
ininister and first lord of the treasury, in a letter entitled "Eco- 
nomic Notes on Insular Free Trade," which he says "were 
circulated to my colleagues in the first days of August, 1903," 
and which were afterwards made public, says: "The most ad- 
vanced of our commercial rivals are not only protectionists now 
but in varying measure are going to remain so. Other nations 
have in the past accepted the principle of free trade; none have 
consistently adhered to it. Irrespective of race, polity, and 
material circumstances, every other physically independent com- 
munity whose civilization is of the western type has deliberately 
embraced, in theory if not m practice, the protectionist system." 

LOSS OF BOTH HOME AND FOREIGN MARKETS. 

Commenting upon these remarkable utterances froin leading 
officials of the British Government and upon the official figures 
regarding conditions in the United Kingdom compared with 
those of other countries, the London Telegraph says : "Internal 
trade, which the free-import system has enabled protected (for- 
eign) capital to capture, is better worth lighting for than all the 
foreign markets of the world. Our fiscal system has thrown 
this vast business at home into the hands of competitors who 
shut us out from their sphere abroad, * * -*' Why is our 



PROSPERITY. <),") 

trade stagnant? Because our products can no longer find in the 
whole world a. single market that is free; and not content with 
being repulsed in every other country, we surrender our own. 
* * * In spite of alarmist predictions of the Cobden Club, 
the United States adopted the McKinley tariff. They knew 
exactly what they wanted; they believed that the more com- 
pletely they secured the home market for home enterprise the 
higher would be the development of their internal industry and 
the greater, therefore, its success in foreign trade. No estimate 
was ever more brilliantly verified. * * * Germany under 
Bismarck abandoned the system of approximate free trade in 
1879; she has since achieved the marvelous expansion in manu- 
facture and commerce with which we have had cogent reason 
to be well acquainted. She has stopped the stream of emigration 
from her shores; that is the test. The Kaiser's subjects would 
have continued as before to flow abroad by millions if pros- 
pects of prosperity previously unknown had not been opened up 
at home after the free-import system was abandoned. No com- 
petent witness can deny the immense subsequent increase of 
employment and the remarkable advance in the general well- 
being of the German people. * * * If you want to judge 
the progress of home production in any country by the index 
fact, inquire what are the make and consumption of iron and 
steel. In the twenty (protection) years before Cobdenism, say 
1825 to 1845, we tripled our output of iron. The United States 
and Germany did exactly the same thing in the two decades of 
protection, 1880-1900, while we increase our consuming power for 
iron by 24 per cent. That is the master fact bearing upon the 
relative progress of home trade. * * * Capital can move 
from trade to trade and from country to country. The tariffs of 
the United States and the Continent have compelled many well- 
known British employers to transfer their undertakings to foreign 
soil and find employment for foreign workmen. But to a work- 
ing man the trade he has been taught is his very life. If the 
ordinary skilled artisan cannot find employment after he attains 
full manhood in the trade in which he has been brought up he 
is ruined, unless he emigrates to a country like America, a 
country with tariff, not only willing to give him employment 
but give him an absolute guaranty against the displacement 
of his labor by foreign competition. * * * The working 
classes in the United States and Germany have been increasing 
their savings faster than the working classes here. * * * 
English workmen receive high wages under free trade, but 
American workmen receive wages 'from 50 to 100 per eent 
higher under the tariff." 

UNPARALLELED SUCCESS OF THE UNITED STATES. 

Representative men of other nations have also noted that 
the prosperity in the United States has come under and by 
reason of protection. Mr. Mulhall, of the Royal Society of Lon- 
don, in his "Balance Sheet of the World," says: "It would be 
impossible to find in history a parallel to the progress of the 
United States in the last ten years. Every day that the sun 
rises upon the American people it sees an addition of two and 
one-half million dollars to the accumulation of wealth of the 
Republic, which is equal to one-third of the daily accumulation of 
all mankind outside of the United States." 

That great statesman of Germany, Prince Bismarck, in a speech 
before the Reichstag, said : "The success of the United States in 
material development is the most illustrious of modern time. The 
American nation has not only succesfully borne and suppressed the 
most gigantic war of all history, but immediately afterwards dis- 
banded its army, found work for all its soldiers and marines, paid 
off most of its debt, given labor and homes to all the unemployed 
of Europe as fast as they could arrive within the territory, and 
still by a system of taxation so indirect as not to be perceived, 
much less felt. Because of its deliberate judgment that the 
prosperity of America is mainly due to its system of protective 
laws, I urge that Germany has now reached that point where 
$t is necessary to imitate the tariff system of the United States." 



96 rao flra& rTT. 

Relation of the Turin'* of the United Stutett to Prosperity or 
Adversity of the People. 

Before taking up the question of the general prosperity at 
the present time, it is proper to review briefly the conditions of 
prosperity and adversity under the various tariffs of the I aited 

States from the earliest date, and to note the elt'eet of low 

and protective tariffs, respectively, upon the conditions among our 
own people, a brief outline will be given of conditions during the 
long period prior to l$6i, a period in which the protective tariffs 
were of such short duration as to give only a suggestion of the 
real benefit of protection when continuously operating upon the 
great industries of the country. The first really protective! tariff 
period in the United States was from 1S12 to 1810, the period in 
which duties were high through the great, increase made in the 
rates at. the beginning of the war of 1812, and so evident was 
the advantage of protection to our domestic manufactures that 
President Madison, in a special message, urged upon Congress 
"deliberate consideration of the means to preserve and promote 
the manufactures which have sprung into existence aud attained 
unparalleled maturity throughout the United States during the 
period of European wars," Notwithstanding this urgency a re- 
turn to low tariff followed, and the British followed the advice 
of Lord Brougham, who in 1810 said in the House of Commons.: 
"It is well worth while to incur a loss upon the first exportation 
in order by the glut to stifle in the cradle those infant manufac- 
tures in the United States which the war has forced into ex- 
istence.' Following this programme, outlined by Lord Brougham, 
British manufactures were poured into the United States, and 
according to Niles, in his history, "great sums of money were 
expended by the British to destroy our flocks of sheep, that 
they might thereby ruin our manufactories. They bought up 
and immediately slaughtered great numbers of sheep; they 
bought our best machinery and sent it off to England, and hired 
our best mechanics and most skillful workmen to go to England, 
simply to get them out of this country, and so hinder and destroy 
our existing and prospective manufactures." As to the result of 
This, Senator Benton, a distinguished Democrat, gives this picture 
of the condition of the times : "No price for property ; no sales, 
except those of the sheriff and the marshal; no purchasers at 
execution sales, except the creditor, or some hoarder of money; 
no employment for industry; no demand for labor; no sale for 
the products of the farm ; no sound of the hammer, except that 
of the auctioneer knocking down property. Distress was the 
universal cry of the people; relief, the universal demand." 

RESULTS OF VARIOUS TARIFFS. 

The response to this universal demand was the protective 
tariff of 1824-33, of which Henry Clay said: "If the term of 
seven years were to be selected of the greatest prosperity which 
this people has enjoyed since the establishment of their present 
Constitution, it would be exactly that period of seven years 
which immediately followed the passage of the tariff of 1824," 
and in regard to the low-tariff period which intervened between 
the two protective tariff periods, already described, he added: 
"If I were to select any term of seven years since the adoption 
of the present Constitution which exhibited a scene of the most 
widespread dismay and desolation, it would be exactly that 
term of seven years which immediately preceded the establish- 
ment of the tariff of 1824." / 

In the low-tariff period. 1833-42, which followed the repeal of 
the protective tariff acts of 1824-28 occurred the great financial 
crash of 1837, of which Senator Gallinger says : "The whole coun- 
try went into liquidation, bank loans and discounts fell off more 
than one-half; the money lost to the country was not less than 
one billion dollars; all prices fell off ruinously; production was 
greatly diminished, and in many departments practically ceased ; 
thousands of workmen were idle, with no hope of employment; 
cur farmers were without markets ; their farms, teeming with 
rich harvests, were sold by the sheriff for debts and taxes ; the low 
tariff which robbed the industries of protection also failed to sup- 
ply Government revenues; the treasury was bankrupt; the reve- 



PROSPERITY. 97 

nne fell off 25 per cent, and the Government was obliged to borrow 
money at high rates of interest to pay current expenses." 

Under the third protection period which followed, from 
1842 to 184G, prosperity returned, and President Polk, although 
a Democrat and free trader, was constrained to say in his annual 
message of December, 184G: "Labor in all its branches is re- 
ceiving an ample reward, while education, science and the arts 
are rapidly enlarging the means of social happiness. The prog- 
ress of our country in her career of greatness, in resources and 
wealth, and the happy condition of her people, is without an 
example in the history of nations." 

The next free-trade period, from 1846 to 1801, while favored 
with special conditions of great demand abroad for our farm 
products and the enormous gold production in California begin- 
ning with 1849, was characterized by the greatest business de- 
pression. In January, 1855, the New York Tribune said: "The 
cry of hard times reaches us from every part of the country. 
The making of roads is stopped; factories are closing; houses 
and ships are no longer being built. Factory hands, roadmakers. 
carpenters, bricklayers and laborers are idle and paralysis is 
rapidly embracing every pursuit in the country. The cause of 
all this stoppage of circulation is to be found in the steady out- 
flow of gold to pay foreign laborers for the clothing and shoes 
and the iron and other things that could be produced by Ameri- 
can labor, but which cannot be so produced under our present 
revenue system." And the New York Herald of January 0, 
1855, said: "Elsewhere will be found some mention of large 
failures at Boston and New Orleans. The epidemic has traveled 
over the whole country. No city of any note can hope to escape." 
By 1801 the condition had grown so serious that " President 
Buchanan, the last Democratic President before the advent of 
the Republican party to control of the Government, said in his 
annual message : "With unsurpassed plenty in all the productions 
and of all the elements of natural wealth, our manufacturers 
have suspended, our public works are retarded, our private en- 
terprises of different kinds are abandoned, and thousands of use- 
ful laborers are thrown out of employment and reduced to want. 
We have possessed all the elements of material wealth in rich 
abundance, and yet, notwithstanding all these advantages, out- 
country in its manufacturing interests is in a deplorable con- 
dition." 

Permanent Prosperity Under Permanent Protection. 

With the permanent return of protection which followed the 
advent of the Republican party in 1801, prosperity and wonderful 
development of the industries of the United States continued 
uninterruptedly, save in those great periods of adversity which 
swept over all countries and by which the purchasing power of 
our foreign customers was greatly reduced. 

An indication of the relative development of prosperity under 
continuous protection following 1801, as compared with that 
under almost continuous free trade prior to that date, may be 
had by contrasting conditions in manufacture, in 'agriculture, in 
wealth, in bank deposits, and other measures of prosperity in 
1890 with those of 1800, the termination of the long low-tariff 
period. In 1800 the country had had seventy years under the 
Constitution, and of those seventy years only sixteen were under 
protection, and they covered such brief and widely separated 
intervals as to reduce materially their general effect upon the 
development of the great industries of the country. Following 
those seventy years of almost continuous low tariff" which ended 
with 1800 came continuous protection down to 1892, when a free- 
trade President and Congress were elected.' It is thus practicable 
to compare the relative development of the country and the 
growth of prosperity during two great periods — practically con- 
tinuous low tariff down to 1800, and continuous protection from 
1800 to 1892. While it is true that the actual enactment of a 
low tariff did not occur until 1894, the effect of the prospective 
change was felt .the very day following the announcement that 
a low-tariff President and Congress had been elected, since 
merchants and manufacturers were from that moment unable 
to safely proceed with their business undertakings in view of 
c 



$8 

the certainty thai Changes in the tariff would occur, and the 
uncertainty as to what those changes would be, A study of the 
protective tariff period must therefore contrast the figured of 
1802, wherever possible, with those of I860, the termination of 
the long period of practically continuous low tariff, and in cases 
where figures for 1892 are not available those of the census 
year 1800 are utilized. 

GROWTH OF WEALTH UNDER LOW TARIFF AND PROTECTION. 

The total wealth accumulated in the United States during the 
seventy years of almost continuous low tariff— from 1700 to I860 
—was, as shown by census figures, 16 billions of dollars; by 1800 
it. had increased to 05 billions, the accumulation during the 
thirty years of protection being 40 billions, or three times as 
much as in the seventy years preceding 18G0. In the closing 
decade of the low-tariff period, 1850-00, the wealth of the country 
increased from 7 to 10 billions, an increase of billion dollars; 
in the very next decade, despite the war conditions which pre= 
vailed, the increase was 14 billions, or 50 per cent more in this 
decade of protection than in the last decade of low tariff; while 
iu the decade from 1880 to 1800 the increase was 23 billions, or 
two and one-half times as much as in the last decade of low 
tariff. The per capita wealth which in 1800, according to the 
census, was $514, in 1800 was $1,038, having a little more than 
doubled in the thirty years of protection. Money in circulation 
in 1800 amounted to 435 million dollars, though much of it Vvas 
of a very unsatisfactory character, being uncertain as to value 
at points distant from the place of issue. In 1802 the total 
was 1,001 millions, or practically four times as much as in 1800, 
and every dollar of it good not only in every part of the country, 
but in every part of the world. Meantime the per capita money 
in circulation had grown from $13.85 in 1800 to $24.50 in 1802, 
having thus nearly doubled in the period of thirty-two years 
under protection— 

BANK DEPOSITS. 

Figures of bank deposits of the various classes which form 
the grand total are not available for so early a date as 1800, but 
the statistics of savings-bank deposits are available for that 
year. They show a total of 140 million dollars for 1800; in 1802 
they were 1,713 millions, or more than ten times as much as in 
1860. Thus in seventy years of almost continuous low tariff 
the workingmen of the country, the class whose funds are depos- 
ited in savings banks, had only reached a condition in which 
they were able to have on deposit 140 millions; while after 
thirty-two years of protection they had 1,713 millions, or more 
than ten times as much as at the end of the seventy years 
of low tariff. The number of depositors in savings banks was, 
in 1800, 003,870, and in 1802, 4,781,005. Contrast the growth in 
the last decade of free trade with that of the first decade of 
protection. During the decade prior to 1800, while the popula- 
tion grew from 23 millions to 31 millions, the number of 
depositors in savings banks increased from 251,354 to 
693,870, an increase of only 442,510. In the next decade, 
despite war conditions and with no increase in territory, and 
less than the normal increase in population by reason of war 
and the resulting reduction in immigration, the number of de- 
positors grew from G93,870 to 1,030,840, an increase of 030,976, 
or more than twice the increase of the former decade. In 
the ten years prior to 18G0 under low tariff the deposits in- 
creased $105,840,374, while in the decade following 1800, under 
protection, the increase was $400,596,854; and it must be re- 
membered that during a considerable portion of the second period 
a large number of the wealth producers of the country were | 
engaged in war. 

FARM VALUES. 

Farm values are another measure of prosperity, and the rela- 
tion of farm values under a period of protection to that under 
a period of low tariff is a fair indication of the effect of a 
manufacturing industry upon the values of farm property. In 
1860 the value of farms and farm property in the United States 



PROSPERITY. 99 

was 7,980^inillion dollars, and in 1890 16 billions of dollars, 
having thus more than doubled in the thirty years of protection, 
as compared with the accumulations in value during the long 
period under low tariff. The value of animals on farms in 
1800 was 1,089 million dollars; in 1890 it was 2,419 millions, 
having increased 1,330 millions, or 122 per cent in the thirty 
years of protection. 

IRON AND COAL. 

Business activity, and especially activity in the manufactur- 
ing industries, may be measured with a fair degree of accuracy 
by the production of pig iron and coal. Up to 1860 the production 
of coal in the entire country had only grown to 8,51d,123 tons; 
by 1870, under a single decade of protection, the production had 
grown to 32,863,000 tons, or nearly four times as much as 
in 1860; and in 1890 it had reached the enormous aggregate 
of 110,866,931 tons, or sixteen times as much as in 1860. Pig 
iron production up to 1860 had only reached a total of 821,223 
tons, the figures of that year being larger than those of any 
preceding year. In a single decade, from 1860 to 1870, the 
production doubled, the figures for 1870 being 1,665,179 tons, 
while in 1890 the total was 9,302,703 tons. In the manufacturing 
industries the total number of persons employed in 1860 was only 
1,311,246, and in 1890 was 4,712,622, or more than three and one- 
half times as many as in 1860; while the wages and salaries 
paid, which amounted to $378,878,906 in 1860, were in 1890 
$2,283,216,529, or six times as much as in 1860. Thus in 1890, 
after thirty years of protection, the number of persons employed 
in manufacturing was nearly four times as many as in 1860 at 
the end of the low-tariff period, and the sum paid in wages 
and salaries in the manufacturing industries was six times as 
great as in 1860. Meantime, it should be remembered, popu- 
lation had barely doubled, the population in 1860 being 31,443,321 
and in 1890 62,622,250. 

The effect of this increase in production upon the facilities for 
transportation and the cost of transporting material is shown in 
the fact that the railways of the country grew from 30,626 
miles in 1860 to 166,654 miles in 1890, and the cost of transport- 
ing a bushel of wheat from Chicago to New York fell from 
24.83 cents- in 1860 to 5.85 cents in 1890, as shown by the 
Statistical Abstract of the United States. 

Still another evidence of the relative growth of business activ- 
ity in the two periods is that of postal receipts of the Post-Office 
Department. In 1860 they were but $8,518,067, and had never 
exceeded that sum in any preceding year. In 1892 they were 
$70,930,476, or eight times as much as in 1860, while population 
meantime had but little more than doubled. 

Prices Reduced by Domestic Competition. 

> Meantime the domestic competition brought about by the 
great home industries built up by the tariff, and despite the 
existence of a tariff which excluded foreign products, had re- 
sulted in a reduction in the price of pig iron from $22.75 per ton 
in 1860 to $15.75 per ton in 1892; of steel rails from $166 per 
ton in 1867, the earliest available data, to $30 per ton in 1892. 
In the cotton industry alone the wages and salaries paid had 
grown from 24 million dollars in 1860 to 69 millions in 1890, and 
the value of the product turned out, from 116 million dollars 
to 268 millions. Meantime the competition in manufacturing in 
the domestic market had reduced the price of standard prints 
from 9.50 cents per yard in 1860 to 6 cents per yard in 1890. 

Thus the number of people employed in manufacturing in 
thirty years of protection practically quadrupled, and the sum 
paid them in wages and salaries was six times as great as that 
paid in 1860. Under the increased home market thus Offered 
to the farmers of the country the value of farm property 
doubled; yet under the competition which grew up within the 
country among the protected industries meantime, prices of 
practically all products fell from 25 to 60 per cent, and the cost 
of transportation was reduced more than 75 per cent. All of the 
figures above quoted are from the Statistical Abstract of the 
United States, an official publication and an accepted authority. 



100 PROSPERITY. 



The Cleveland Low Taritt' I'erlod. 



Following this long period of thirty-two years of protection 
came four years of low tariff, either actual or threatened. The 
morning following the election of Cleveland and a Democratic 
Congress the people of the United States know that a Democratic 
low tariff would be enacted. From that, moment every importer 
was expecting to obtain his merchandise from abroad at a less 
rate through a reduction of the tariff, but was uncertain as to 
what that reduction would he. Tin* manufacturer was also 
uncertain as to what the tin ill conditions would be with refer- 
ence to the raw material which he must import for use in his 
manufacturing. As a consequence merchants who were accus- 
tomed to purchase from the home manufacturer were unwilling 
to give orders because they felt that they might find it profitable 
to buy from abroad under the reduced tariff. Manufacturers 
were unahle to make contracts hoth hy reason of this fact and 
the uncertainty regarding the cost of imported materials which 
they must import. 

The effect of this was an immediate check in the manufactur- 
ing industries, and this in turn resulted in a reduction in the 
number of employees and in the wages paid. This condition, 
in its turn, decreased the market offered by these millions of 
employees to the farmer, the purchasing power of these millions 
of employees and of the farmers whp were thus affected was re- 
duced, and the retail merchant thus suffered a loss in business; 
tlie quantity of material to be carried by the railroads for the 
'manufacturing establishments fell off, and the railroads in 
turn were compelled to reduce the number and wages of their 
employees, and this again reduced the purchasing power of that 
class of citizens. The general result was a great falling off 
in sales by the merchants and dealers of the country, and a 
great reduction in their purchases from the manufacturers, who 
thus found their home market still further reduced by this loss 
of the earning power of the various classes of consumers' and 
this in turn reacted upon the financial institutions of the coun- 
try. Disaster followed disaster and failure followed failure, 
and in the single year 1893, under the mere shadow of free 
trade, the certainty of tariff reductions and the uncertainty as to 
what they would be, the number of failures grew from 10,344 in 
1S92 to 15.242 in 1893, and the liabilities of the failing firms 
from $114,044,167 in 1892 to $346,779,889 in 1893. The effect 
upon the great railroad interests of the country was shown 
in the fact that seventy-four railroads with a mileage of 29,930 
miles were placed in the hands of receivers in the single year 
1893, while In the years 1895-96, the closing period of low tariff, 
26,571 miles of railway, or one-seventh of the entire number 
of miles in the United States, were sold under foreclosure. 
Meantime the freight carried, which was 730,605,011 tons in 1892, 
fell to 674,714,747 tons in 1894. and the number of passengers 
carried from 575,769,678 in 1892 to 529,756,259 in 1895. Bank « 
clearings of the country, another measure of business activity, 
fell from $60,883,572,438 in 1892 to $45,028,496,746 in 1894, while 
those of New York alone fell from 36 billion dollars in 1892 to 24 
billions in 1894, and did not again reach their normal height 
until 1898, one year after the restoration of the Republican 
party and the protective tariff. Large numbers of workmen in 
the factories lost their employment, and the remainder suffered 
a reduction in wages. These conditions may be expected to return 
in case of another low-tariff experiment. 

ENORMOUS LOSSES UNDER LOW TARIFF. 

The effect of this upon other industries, especially that of 
agriculture and those employed in supplying the food, clothing, 
and household requirements of the persons thus affected, was 
greatly felt, and in turn caused a reduction in the earnings 
of those engaged in the various occupations so much dependent 
upon manufacturing and the prosperity of those engaged therein. 
Plow great the loss of earnings and wages can not be told in 
precise terms. Certain facts, however, which indicate in some 
degree w r hat the loss was are available. The Massachusetts 
labor reports, which were showing a steady increase in wages 



PROSPERITY. 101 

paid in that State year after year during -rrosiuent Harrison's 
Administration, showed a decrease in 1893 of over 10 million 
dollars and in 1894 of over 11 "million dollars }n fcW jMtges of 
persons employed in the 4,400 manufactur-nig' establishments 
to which its inquiries were extended. Another inquiry as to 
wages paid in 200 great manufacturing establishments in the 
United States from 1890 to 1899 showed that the wages paid 
in these 200 establishments fell from 53 million dollars in 1892 
to 48 millions in 1893 and 40 millions in 1894. Railway em- 
ployees fell off nearly 100,000 in number, and wages were reduced 
among those who were so fortunate as to be able to retain 
their positions. It has been estimated that the loss in earnings 
by the employees of the manufacturing establishments of the 
country alone averaged 380 million dollars a year, or over a 
million dollars a day, during the entire period from the election 
of Cleveland and a free-trade Congress to the election of McKin- 
ley and a protection Congress, while the effect of this loss of 
earnings upon the other branches of industry and commerce 
closely allied thereto cannot be measured in figures. 

Tnese conditions of adversity in manufacturing, transporta- 
tion and in. other commercial and industrial lines were reflected 
directly upon the 'farmers of the country. The manufacturing 
industries, which draw, according to the census reports, 80 per 
cent of their materials from: the products of agriculture, re- 
duced very greatly their purchases. The millions of men thrown 
out of employment in the manufacturing establishments and 
the other industries dependent upon them for their activity 
reduced their purchases of farm products, and the general de- 
pression which came to all classes of citizens was felt finally, 
and perhaps most heavily, by the farmers, who furnish not only 
the food supply, but a large part of the material for clothing 
and other manufactures consumed by the people of the country. 
The farm value of the wheat produced in the United States, 
which in 1891 was 513 million dollars, by 1893 was only 213 
millions, a fall of more than one-half; in 1894 it was 226 millions, 
and in 1895, 238 millions. The farm value of the corn crop 
of the country, which in 1891 was 836 million dollars, was in 
1896 491 millions. The value of farm animals, which in 1892 
was 2,461 millions, fell gradually, and showed in 1896 a total 
of only 1,727 million dollars, a reduction of about one-third in 
value of the animals on the farms, while the percentage of re- 
duction in value of the crops was even greater than this. All 
of these figures are from the official reports of the Department 
of Agriculture. 

Return of Prosperity Under < Protection. 

The very day following the election of McKinley, however, 
presented a marked change in the industrial condition of the en- 
tire country. Mr. McKinley had expressed the opinion that "it 
is better to open the mills than the mints," and the mills re- 
sponded the moment his election was assured. The newspapers 
of the very day following his election teemed with telegrams 
from all parts of the country announcing that mills and factories 
which had long been closed were preparing to start up. No 
one can examine the files of newspapers of that day without 
being impressed by the promptness with which business re- 
sponded to an assurance of the restoration of a protective tariff. 
True, the" merchants could not determine accurately the precise 
increase which would be made in the rates of duty on that which 
they had to buy ; the manufacturers could not determine accu- 
rately the increased amount of protection which they would re- 
ceive; but the name of McKinley, the newly elected President, 
was so closely identified with the tariff act under which pros- 
perity had existed from 1890 to 1892, and the promise had been 
so clearly made that a special session of Congress would be 
called to repeal the existing tariff and restore protection, that 
the announcement of the election of McKinley and a Republican 
Congress assured a prompt return to effective protection and 
therefore employment for the people and earnings with which 
to purchase the products of the farm and factory. 

Money which had been withdrawn from circulation immedi- 
ately made its appearance. The money in circulation on July 1, 



102 PROSPERITY. 

1896, wr.s 1,506 million dollars, on July 1, 1897, 1,640 millions, an 
increase of 134 million dollars in m single year. From that time on 
the money .in circulation increased steadily, reaching 2,055 million 
ctotlars in i960, 2.2-19 millions in 1902, and over 2,500 millions in 
1904. The per capita of money in circulation, which under Cleve- 
land and low tariff fell from .$24.50 in 1892 to $21.41 in 189G, 
„ passed the $30 line in the closing months of 1903, and is now 
uearly $31. The bank clearings of the country which had fallen 
from 60 billions of dollars in) 1892 to 45 billions in 1894 were 65 
billions by 1898, 84 billions by 1900, and 114 billions in 1903. 
Bank deposits, which stood at 4,916 million dollars in 1896, as 
against 4,619 in 1892, increased to 5,725 millions in 1898, 7,298 
millions in 1900, and 9,673 millions in 1903, being almost twice 
as great in 1903 as in 1896 at the close of the low-tariff period. 
The total increase in bank deposits in the four years ending 
with 1896 was but 300 million dollars, while in the next four 
years, under protection, the increase was 2,382 millions, or prac- 
tically eight times as much in the four years of protection 
as in the four years of threatened and actual low tariff. Savings 
bank deposits, which in 1892 stood at 1,712 million dollars, 
were in 1896 but 1,907 millions, an increase of only 195 million 
dollars during the four years of low tariff influence; but in 1900 
the total stood at 2,449 millions, an increase of 542 millions, and 
by 1903 had reached 2,935 millions, the total for 1903 being 
1,223 millions, or 70 per cent, greater than in 1896. The number 
of depositors in savings banks was in 1896 6,065,494 and in 1903 
7,305,228, an increase of 44 per cent. 

MINERAL PRODUCTION. 

Another means of measuring the effect of the low-tariff period 
upon manufacturing industries is found in the official figures 
showing the value of minerals produced in the United States. 
Minerals are so important a factor in the manufacturing indus- 
tries, supplying as they do not only a, considerable part of that 
which enters into manufactures but the coal with \vhich the raw 
material is transformed into the finished product, that the record 
of their production, whether stated in quantity or value, furnishes 
an important measure of general business activity and pros- 
perity. In 1892, according to. the report of the Geological Sur- 
vey, the value of minerals produced was $648,895,031, and by 
1894 had fallen to $527,079,225, a decrease of nearly 20 per cent. 
In 1896 the total mineral production stood at 622 million dollars, 
and by 1900 had reached 1,063 millions and in 1902 was 1,260 
millions, or more than double the value of the product of 
1896. This contrast between the two periods— that of low tariff 
threatened or actual, and that of protection— upon the value 
of the minerals produced in the United States is extremely im- 
portant in view of the relation of the mineral industry to the 
manufacturing industry of the country. During the entire 
four-year period under low tariffs, threatened or actual, the an- 
nual value of minerals produced was less than that of the last 
year under President Harrison and a protective tariff, while 
in the six years since the close of the low-tariff period the 
value of the minerals produced actually doubled. 

COTTON CONSUMPTION. 

Still another measure of manufacturing activity is found in 
the quantity of cotton consumed by the cotton mills of the United 
States. The Bureau of Statistics in its official reports shows that 
the number of bales of domestic cotton taken by the cotton manu- 
facturing establishments of the United States for their own use 
was, in 1892, 2,856,000 bales, and by 1896 had fallen to 2,505,000 
bales. By 1898 the number had reached 3,465,000; in 1900 was 
3,644,000 ; in 1902, 4,083,000 ; but was reduced slightly in 1903 by 
reason of the excessively high price of cotton, the total for that 
year being 3,924,000 bales, Thus during the four years of low 
tariff, threatened or actual, the domestic cotton used in the mills 
Of the United States actually fell off 350,000 bales, while in the 
pext four years, under protection, the increase was more than 
one million bales, and in the entire period since 1896 the increase 
lias been Vk fftillion bales, 



PROSPERITY. 103 

RAILROAD TRANSPORTATION AND EARNINGS OF EMPLOYEES. 

Railroad transportation, another index of business condi- 
tions, shows greatly increased activity under the return to pro- 
tection. The number of tons of freight carried one mile, which 
had fallen from 90 billions in 1893 to 82 billions in 1894, was 97 
billions in 1897, 114 billions in 1898, 141 billions in 1900, and 
150 billions in 1902, or nearly double that of the lowest point 
under Cleveland and the low tariff. The number of passengers 
carried, which fell from 575 millions in 1892 to 529 millions in 
1895, was in 1902 655 millions. The number of men employed 
by the railroads of the country, which had fallen from 821,415 
in 1892 to 779,608 in 1894, rapidly increased and by 1898 was 
874,558, in 1900 was 1,017,653, and in 1902, 312,537. The com- 
petisation paid to all railroad employees in 1895 was, according to 
the report of the Interstate Commerce Commission, $445,508,261 ; 
by 1899 it was $522,577,896, and in 1903, $757,321,415, an increase 
of 311 million dollars, or 10 per cent, in the annual earnings of 
railroad employees of the country compared with 1895, under the 
low tariff. 

WAGES AND SALARIES. 

The increase in earnings of persons employed in the manufac- 
turing establishments of the country can only be estimated, owing 
to the fact that reports on this subject are made by the 
United States Census, and therefore figures are only available 
for decennial years. The fact, however,' that the production of 
pig iron— that barometer of business conditions in manufacturing 
interests* — fell from 9 million tons in 1892 to 6% millions in 
1894; that the value of minerals produced fell from 648 million 
j dollars in 1892 to 527 millions in 1894; that the importation of 
raw material for use in manufacturing fell from 197 million 
\ dollars in 1892 to 126 millions in 1894; coupled with the well- 
! known fact of general depression among manufacturers and the 
i armies of unemployed who marched upon Washington demanding 
\ legislation which would give them occupation — shows that the 
actual loss in earnings during the low-tariff period must have been 
very great ; while the fact that the census figures of 1900 showed 
wages and salaries paid in manufacturing establishments at 
$2,735,430,848, against $2,283,216,529 in 1890 indicates that the re- 
covery from the depression of 1893-96 must have been very rapid, 
and that the annual earnings of the employees of the manufactur- 
[ ing establishments of the country are now many hundreds of mil- 
lions in excess of those of the low-tariff years. *• 

GREAT BENEFIT TO THE FARMERS. 

All of these important conditions in the earnings of the manu- 
tnring industries and the earnings of their workmen— the in- 
crease of 50 per cent in sums paid to railway employees, the 
increase of 66 per cent in the amount of money in circulation, 
the increase of 60 per cent in the value of agricultural products 
exported — have had a marked effect upon the prosperity of the 
farmer. Just as the closing of factories, the suspension of rail- 
way activities, and the general business depression caused an 
enormous decrease in the value of farm products of all classes, 
so the increased activity in manufacturing, the increased wages 
paid to workmen in the factories, the increase in earnings of 
railway employees, the improvement in general business activities, 
and the increase in exportations have increased the value of the 
products of the farm. The farm value of the wheat crop of 
the United States in 1893, as shown by the official figures of the 
Department of Agriculture, was 213 million dollars ; in 1894, 220 
millions; in 1895, 238 millions; and in 1903, 443 millions, or 
more than double the annual average during the years 1893-95. 
The farm value of the corn crop was 591 million dollars in 1893, 
554 millions in 1894, 545 millions in 1895, and 491 millions in 
1896, an annual average of 536 millions; while in 1902 the farm 
value of the corn crop was 1,071 millions, or practically double 
the annual average value during the Cleveland low-tariff period. 
\The farm value of the cotton crop of the United States was 
in 1893 268 million dollars; in 1894, 264 millions; in 1895, 262 
millions, and in 1896, 269 millions— an annual average of 266 
millions; while for the year 1901 the value was 469 millions, or 



104 PROSI'KKITY. 

7.~» per cent, greater than the annual average during; the Cleve- 
land low tariff administration, and in L903 was about equal to 
that of 1901. TIh- wool production of the country, which fell 
from 80? million pounds in 1893 to 209 millions in IS!)."), was in 
Phil 1 :•.]•; million pounds, and with prices tift.v per cent Higher than 
those of the low-tariff period when wool from abroad was being 
imported free of duty. The value of animals on farms, which fell 
from 2,483 million dollars in 1893 to 1.707 millions in 1866, in 
1901 for the first time passed the three billion dollar line, being 
3,011 millions, and in 1903 was 3,102 millions, having doubled in 
value. 

Prosperity Under President Roosevelt. 

The prosperity which has been a feature of business con- 
ditions since the return of the Republican party to control a*nd 
the enactment of a protectee tariff has been quite as strongly 
marked under the administration of President Roosevelt as at 
any time in the history of the country. This fact should be of 
itself a sufficient reply to the cry of the opposition that "Roose- 
velt is an unsafe man for President." No factor in our national 
life is more sensitive to adverse or even doubtful conditions 
than business and finance. In order to test thoroughly the con- 
dition of business during President Roosevelt's Administration 
with that of former years a table has been prepared and pre- 
sented herewith (p. 11G), compiled in all cases from official figures, 
showing conditions in the various lines of business and industry in 
the last year of President Roosevelt's term, 1903, compared with 
the last full year of President McKinley's Administration, 1900, 
the last full year under President Cleveland, 1896, and the last 
year under President Harrison, 1892. This table shows, for ex- 
ample, that the money in circulation in 1892, the last year under 
President Harrison, was 1,601 million dollars; in, 1896, the last 
year under President Cleveland, 1,506 millions; in 1900, the last 
year under President McKinley, 2,055 millions, and in 1903, the 
last year under President Roosevelt, 2,367 millions, and it may 
be added that at the present time the tptal exceeds 2,500 mil- 
lions. The per capita of money in circulation in 1892 was $24.56 ; 
in 1896, $21.41; in 1900, $26.94, and in 1903, $30.38. This does 
not look as though capital or money, the most conservative of 
business factors and the most prompt in responding to adverse 
conditions, find cause for alarm in the administration of Presi- 
dent Roosevelt. Savings-bank deposits, which were 4,781 million 
dollars in 1892, 5,065 millions in 1896, and 6,107 millions in 1900, 
were 7,305 in 1903. Total bank deposits, which were C619 mil- 
lions in 1892, 4,916 millions in 1896, and 7,208 millions in 1900, 
were 9,673 millions in 1903. Bank clearings for the entire coun- 
try, which were 61 billion dollars in 1892, 51 billions in 1896, and 
84 billions in 1900, were 114 billions in 1903. Tons of freight 
carried on the railroads of the country, which amounted to 730 
millions in 1892, 773 millions in 1896, and 1,071 millions in 1900, 
were in 1902, the latest available year, 1,192 millions. These 
are a few of the more important items, any one of which may be 
considered a fair index of business activity and prosperity. But 
each of the forty-odd items composing the table tells its own 
story of the prosperity of the particular industry to which it is 
related. 

Single-year statements are, however, sometimes misleading, 
and in order that there may be no doubt as to the perfect fair- 
ness of this comparison another table is presented showing the 
annual average of each of the forty-odd articles included in the 
above-mentioned table during the four years of 1893, 1894, 1895, 
and 1896 of President Cleveland's term; 1897, 1898, 1899, and 

1900, the four full years of McKinley's first term, and the years 

1901, 1902, and 1903, under President Roosevelt. Attention is es- 
pecially called to this table showing the annual average in 
business conditions during the three presidential periods, which 
while it fully confirms the table above referred to, strengthens 
the general statement by its indication of the steady upward 
movement of business conditions which has characterized the 
entire seven years since the close of President Cleveland's term 
and maintained its upward movement down to the latest date 
for which figures are available. 



PROSPERITY. 



105 



These tables have been prepared with great care from official 
records in every instance, and their accuracy and fairness cannot 
be called in question. Attention is especially called to their 
value not only as an evidence of continued prosperity in every 
branch of our industries and business but as a complete refuta- 
tion of the attacks made upon the administration of President 
Roosevelt in its effect upon the business and industrial conditions 
f the country. 

Prosperity vs. Adversity. 



Table of Annual Averages of National Financial and Industrial 
Conditions During the Administrations of Presidents Cleve- 
land, McKinley and Roosevelt. 

[Annual average for periods named.] 






[Compiled from the Statistical Abstract of the United States.] 



Interest-bearing debt 

Annual interest charge 

Annual interest per capita 

Treasury receipts, net ordinary 

Government expenditures, ordinary 

Money in circulation 

Money in circulation, per capita 

Bank clearings, total ... 

Bank clearings, New York > 

Bank deposits, total 

Bank deposits, savings 

Depositors in savings banks 

Industrial life insurance in force 

Life insurance, total, in force 

Imports, total 

Exports, total 

Excess of exports over Imports 

Exports of manufactures 

Imports of raw material for manufacturing 

Gold: Excess imports over exports 

Exports to Asia and Oceania 

Crude rubber imports pounds.. 

Pig tin imports do 

Tin plate imports do 

PBODTJCTION. 

Coal tons.. 

Pig iron do... 

Steel rails do... 

Steel, total do... 

Tin plate pounds.. 

Minerals, total value 

Cotton, total value , 

Beet sugar, 1,000 tons 

Wool pounds.. 

Raw silk, imports do 

Cotton used in manufacture >r tons.. 

Animals on farms, total value 

Hordes on farms, total value 

Cattle on farms, total value 

Sheep on farms, total value 

Net earnings of railways 

Dividends paid by railways \. 

Passengers carried 1 mile ;. 

Freight carried 1 mile tons.. 

Miles placed under receivership 

Miles sold under foreclosure 

Miles built 

Average receipts per ton mile 

Tonnage of vessels passing through Sault 8te 

Marie Canal 

Failures, liabilities of 

Post office receipts 

Wheat,- average price of 

Corn 

Oats 

Homestead entries 



1893-1896 


1897-1900 


1901-1903 


Millions 


Millions 


Millions 


696 


941 


944 


27.9 


37.5 


27.6 


$0.41 


$0.48 


$0.35 


331 


459 • 


570 


335 


436 


465 


1,592 


1,859 


2.264 


$23.29 


$25.13 


$28.61 


51,700 


73,300 ' 


114 900 


29,066 


45,131 


74.202 


4,757 


6.223 


9.139 


1,813 


2,169 


2,760 


4.9 


56 


6.8 


793 


1.217 


1 723 


5,635 


7,394 


10,051 


758 


732 


917 ' 


856 


1,251 


1,430 


98 


519 


513 


188 


335 


407 


183 


253 


327 


• 50 


50 


4.5 


20 


49 


57 


38 


45 


63 


42 


63 


80 


494 


164 


142 


165 


210 


270 


7.96 


12 21 


17 27 


1.27 


1.75 


2.73 


4 96 


9.23 


14.21 


226 


698 


857 


575 


731 


1,136 


266 


300 


334 


26 


54 


170 


271 


272 


302 


8 02 


11.09 


13 30 


251 


3.38 


8.85 


2.050 


1,942 


3,034 


7' 9 


512 


1.005 


879 


1,060 


1,325 


87 


97 


161 


333 


416 


640 


83 


107 


168 


566 


529 


640 


89 


100 


155 


11,474 


1.697 


193 


7,9iil 


5,125 


795 


1 .900 


2.891 


4.439 


$0.85 


$0.76 


$0.75 


14 


20 


28 


230 


128 


128 


77 


92 


122 


$0 70 


87 6 


83.1 


44.4 


39.0 


45 5 


31.3 


27.5 


40.8 


6,174 


328 


14,241 



•(Excess exports.) 



It Is foolish to pride ourselves upon our progress and pros- 
perity, upon our commanding position in the international indus- 
trial world, and at the same time have nothing hut denunciation 
for the men to whose commanding position we in part owe this 
very progress and prosperity, this commanding position. — Presi- 
dent Roosevelt at Cincinnati, Ohio, September 20, 1902, 



106 PROSPERITY— SAVINGS BANK DEPOSITS. 

SAVINGS BANK DEPOSITS. 

The 1 nltlcs which follow relate to savings banks and savings- 
bank deposits in tbe United States and show conditions from 1820 
down to the present time. They are prepared by the Comptroller 
of the Currency and may be accepted as an official and reliable 
statement of the condition of the savings banks of the United 
States during that period. A careful study of these tables will 
develop some startling facts with reference to the growth of sav- 
ings banks under protection. During the long period of almost 
continuous low tariff prior to 1801 deposits in the savings banks 
of the country had never reached so much as 150 million dollars, 
the highest point being 149 millions in 1800. By 1870 the deposits 
in savings banks had trebled, being in that year 549 million dol- 
lars, the increase during the decade ending with 1870 being 400 
million dollars, or nearly three times as much as the growth dur- 
ing the 40 years from 1820 to 1800. In the next decade, ending 
with 1880, the increase was 270 million dollars ; in the next decade, 
ending with 1890, over 700 millions, and in the decade ending with 
1900 more than 800 million dollars. Attention is especially called 
to the contrast between conditions during the recent low-tariff 
period and those under protection. In 1893 the deposits in the 
savings banks of the United States were 1,785 millions, and in the 
following year dropped to 1,747 millions, an actual decrease of 38 
million dollars. The average per capita savings bank deposits in 
the United States, which in 1893 stood at $26.63, fell to $25.53 in 
1894, $25.88 in 1895, $20.56 in 1896, and $26.68 in 1897, the per 
capita being thus less on July 1, 1897, at the close of the Cleveland 
low-tariff period than it was on July 1, 1893, practically the be- 
ginning of that period. Immediately following the return to pro- 
tection, however, the total savings-bank deposits and the per capita 
of such deposits began to increase, and the per capit of savings- 
bank deposits has grown from $26.56 in 1897 to $36.52 in 1903, 
an increase of 37 per cent. 

Attention is also called to the table which follows that above 
alluded to, which shows the deposits by States, and to another 
table which shows the deposits and number of depositors, etc., in 
each of the principal countries of the world. It will be seen that 
the total deposits in savings banks in the United States exceed 
those in any other country of the world, and that the average for 
each depositor is also greater in the United States than in any 
other country. A comparison of the figures of this last-mentioned 
table with those of the table showing deposits by States shows that 
the total amount of deposits in the single State of New York, with 
its 7y 2 millions of population, is greater than that in all the 
United Kingdom with its 42 millions of people ; while a comparison 
of other States with the less important countries is also inter- 
esting. 

The table which shows the total bank deposits in each State 
may prove convenient for reference, especially in considering the 
effect of manufacturing industries upon the business activity and 
prosperity of the States in which they are located. 

The table on pages 107-108 are especially interesting in their 
showing the conditions relative to prosperity during recent years. 
It will be noted that although the number of savings banks 
depositors and the amount of their deposits was rapidly in- 
creasing prior to 1892, there was but little increase in 1893 and, 
an actual decrease in 1894 in the number of banks, the number 
of depositors, the amount of money deposited, the average amount 
due each depositor and the average per capita of deposits in the 
United States. The falling off in amount of deposits in 1894 com- 
pared with 1893 was nearly $40,000,000. This is a marked con- 
trast with conditions in more recent years in which the increase 
in deposits in the savings banks has averaged more than $100,- 
000,000 a year since 1897. The total amount of deposits in the 
savings banks of the United States has increased 50 per cent 
since 1897. 

Attention is also especially called to the table on page 108 
which shows the number of depositors and deposits in the savings 
banks of the principal countries of the world and shows a larger 
sum deposited in savings banks of the United States than those 
of any other country and a larger average deposited per indi- 
vidual in the United States than in any other country. 



PROSPERITY — SAVINGS BANK DEPOSITS. 



Number of savings banks in the United States, number of de- 
positors, amount of savings deposits, average amount due each 
depositor in the years 1820, 1825, 1835, 1840, and 18J5 to 
1899, and average per capita in the United States in the years 
given. 

[Compiled in the office of the Comptroller of the Currency.] 



Year. 



N limber 
of banks 



Number of 
depositors 



Deposits. 



Average 
due each 
depos- 
itor. 



1820.. 
1825.. 
1830.. 
1835.. 
1840.. 
1845.. 
1846.. 
1847., 
1948 
1849. 
1850. 
1851. 
1852., 
1853. 
1854. 
1855. 
1838. 
1857. 



1861.. 
1862.. 
1863. 
1864. 
1865. 
1866. 
1867. 



1870.. 
1871.. 
1872.. 
1873. 

1874., 
1875., 
1876. 
1877. 
1878. 
1879. 
1880. 
1881. 



1887. 



1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 



10 
15 
S6 

52 
61 
70 
74 
70 
83 
90 
108 
128 
141 
159 
190 
215 
222 
231 
245 
259 
278 



305 
817 
336 
371 

406 

476 

517 

577 

647 

669 

693 

771 

781 

675 

663 

639 

629 

629 

629 

630 

636 

646 

638 

684 

801 

849 

921 

1,011 

1.059 

1 030 

1,024 

1,017 

988 

980 

979 

987 

1,002 

1,007 

1,036 

1,078 



8,635 

16,931 

38,085 

60.058 

78,801 

145,206 

168,709 

187.739 

199.764 

217,318 

251,354 

277.148 

308,863 

365,538 

396,173 

431,602 

487,986 

490,428 

538,840 

622,556 

693,870 

694,487 

787,943 

887.096 

976,025 

980,844 

1,067,061 

1,188,202 

1.310 144 

1,466.684 

1.630,846 

1.902.047 

1,992,925 

2,185,832 

2,293,401 

2.359,864 

2,368,630 

2,395.314 

2,400,785 

2,268,707 

2,335,582 

2,528.749 

2,710,354 

2,876,438 

8,015,151 

8.071,495 

3,158.950 

3,418,013 

3.838,291 

4.021,523 

4,258,893 

4,533,217 

4 781,605 

4,830,599 

4.777,687 

4,875,519 

5,065,494 

5,201,132 

5,885,746 

5,687,818 

6,107.083 

6,858.723 

6,666,672 

7,305,228 



$1,138,576 

2,537,082 

6,973,304 

10,613,726 

14,051,520 

24.506.677 

27,374.325 

31,627,497 

33,087,488 

36,073.924* 

43,431,130 

50,457,913 

69,467,453 

72 313,696 

77,823,906 

84,290,076 

95.598,230 

98,512,968 

108,438.287 

128,657,901 

149.277,504 

146,729,882 

196,434.540 

206,235,202 

236,280,401 

242,619,382 

282,455,794 

337,009,452 

392,781,813 

457,675,050 

549,874,358 

660.745,442 

785,046,805 

802,363,609 

864,556,902 

924,037,304 

942,350,255 

866,218.306 

879,897,306 

802,490.425 

819,106,973 

891,961,142 

966,797.081 

1,024,856,787 

1,073,294.955 

1,095,172,247 

1,141,530,578 

1.235,247.371 

1,364,196,550 

1,425,230.349 

1,524,844 506 

1,623,079,749 

1,712.769,026 

1,785.150,957 

1,747,961,280 

1,810.597,023 

1,907,156.277 

1.939.376,035 

2,065,631.298 

2.230,366.954 

2.449.547,885 

2 597.094.5S0 

2.750.177,290 

2,935,204,845 



$131.86 
149.84 
183.09 
176.72 
178.54 
168.77 
172.48 
168.46 
165.63 
165.99 
172.78 
182.06 
192.54 
197.82 
196.44 
195.29 
195.90 
200.87 
201.24 
206.66 
215.13 
211.27 
215 03 
232.48 
242.08 
247.35 
264.70 
283 63 
299.80 
312.04 
337.17 
34213 
368.82 
367.07 
876.98 
391.56 
397 42 
36163 
366.50 
353 72 
350.71 
352 73 
356.70 
356 29 
355.96 
356 56 
361.36 
361.39 
355.41 
354.40 
858.03 
858.04 
358 20 
369 55 
365.86 
371.36 
376 50 
372.88 
383.54 
392.13 
401.10 
408.30 
412.53 
417.21 



108 



PROSPERITY— 8AVIN.G8 RANK DKH tSlTS. 



\ urn her of savings depositors, aggregate savings deposits, and 
<t rcni<jc amount due to depositors in savini/s bunks in emh 
State in 1901-2 and 1902-3. 

[From report of the Comptroller of the Currency.] 





1901-2 (1,036 banlw). 


1902-3(1,078 banks). 


States, etc. 


Number 
of de- 
posit- 
ors. 


Amount of 
deposits. 


Aver- 
age to 
each 
depos- 
itor. 


Number 
of de- 
posit- 
ors 


Amount of 
deposits 


Aver- 
age to 
each 
depos- 
itor. 




193,005 
147.928 
128.529 
1.593,640 
13S.366 
425,588 


$72,082,694 
60,249.862 
41.987,497 
f.00,705,752 
71,900,541 
N 193,248,909 


$373.47 
407.29 
326.68 
351.84 
519.64 
454.07 


208,141 
155,309 
184,323 
1.660.814 
150,342 
444,407 


$74,781,073 
63.919,183 
44,628,150 

589497,084 
74,584,628 

203,522,226 


$3-9.28 










8A8 '0 






457.96 




Total New England States. 


2,627,056 


1,000,175.255 


380.72 

471 68 
307.60 
303.47 
302.26 
345.52 
120.75 


2,75S,33« 


1,048,322,344 


380 74 


New York 

New Jersey t... 


2,229.661 

227.130 

396.877 

4.187 

1S6.293 

10 845 


1,051,689.186 

69,866,709 

120,441 275 

1.265.5S6 

64 367.767 

1,309,555 


2,327,812 
238,210 
407.652 
-921,792 
155,299 
11,758 


1,112.418,552 

73,722,729 
128514.295 

6.586.851 
62,253,508 

1,654,715 


477.88 
309 48 




315 25 




302 26 


Maryland 


400 86 


District of Columbia 


140 73 






Total Eastern States 


3,054,993 


1,308,940,078 


428.46 


3.162,523 


1,385,150,650 


437.99 


West Virginia * 


4 687 
12,201 


'680.372 
2,451 ,838 


145.16 
200.95 


4.853 
617,721 


836,358 
3,282,164 


172 33 


North Carolina 


185 21 






Total Southern States 


16,888 


3,132,21 


185 47 


22,574 


4,118,522 


182 44 


Ohio...... 


103,405 

21,362 

6277,879 

3,908 

(53.293 

a238,421 


48.180 438 

7,288 606 

C100.G72.804 

719.009 

15 526,701 

85,703,614 


465.94 
299.17 
360.13 
183.98 
245 31 
359.4« 


108,854 

24,733 

6360.991 

4,290 

69.763 

3240.063 


52,306,123 

8,072,500 

cll9. 72 1,739 

810 533 

18,624,665 

86,602,757 


480 51 
826.88 


Illinois 


331 64 




188.93 




266 97 




360.75 






Total Middle States 


711,268 


257,491,072 


362 02 


808,694 


286,138317 


353.83 






California, total Paciflcstate* 


a256,467 


180,438,675 


703.55 


a288,101 


211.475,012 


734.08 


Total United States 


6,666,672 


2,750,177,290 


412.53 


7,035,228 


2,935,204 846 


417.21 







a Estimated. 
6 Partially estimated. 

c savings deposits in State institutions having savings departments; abstract of 
reports included with'State banks. 



Depositors, amount of deposits, and average deposit in all sav- 
ings hanks, and average deposit per inhabitant, according to 
latest available information. 



[From 1903 report of the Comptroller of the Currency, and the 
Statesman's Yearbook for 1904.] 



Countries. 


Number of 
depositors. 


Deposits. 


Average 
deposit. 


Austria 


4,946.307 

1,908,463 

1,176,853 

11,051,979 

14,863,956 

1,202.889 

6,021,662 

1,256,451 

695.524 

4.517,342 

181.269 

1.865,596 

10,803.555 

1.287,966 

211,762 

101.017 

866,693 

19,331,000 

6.506,717 

7,035,228 


$876,941,933 

150,191,761 

176,244,144 

854,879,328 

2,103 582,754 

283,995,000 

431.764,353 

69,831.688 

86,292,423 

491,317,622 

15,700,000 

143,418,740 

959,236.637 

202,494,802 

58 868,347 

14,805,849 

34,656.342 

18,356.827 

35,852.467 

2,935,204,845 


$177 29 
78.69 




150.00 




77.35 




141.52 


Hungary 

Italy 


236.09 
71 70 




55 58 




124.06 




108.76 


Finland 


86 61 




76. *7 




88.80 




157.22 




277.99 




146.57 


British India 


39.98 




72 51 




5.51 




417.21 






Total 


88,502,229 


9,943,635,860 • 


112.36 







PROSPERITY — SAVINGS BANK DEPOSITS. 



109 



Deposits in banks of all classes in the United States, 1875 to 1908. 
[From reports of Comptroller of Currency.] 

Deposits in — 



Tear. 


National 
banks 


Savings 


State 


Loan and 

trupt 
companies. 


Private 


Total 




(individual 
deposits). 


banks. 


banks. 


banks. 


deposits. 


1875 


$686,478,630 


$924,037,304 


$165,871,439 


$85,025,371 


$321,100,000 


$2,182,512,744 


1876 


641.432,886 


941,350,255 


157,928,658 


87,817,992 


322,100,000 


2,150,629,791 


1877 


636,267,529 


866,218,306 


226.654,538 


84,215,849 


243,840,000 


2,057,196,222 


1878 


621,632.160 


879 897,425 


142,764.491 


73 136,578 


183.830,000 


1,901,260.654 


1879 


648.934,141 


802,490,298 


166,958,229 


75,873,219 


139.920.000 


1,834,175,887 


1880 


833,791,034 


819.106,973 


208,751.611 


90,008,008 


182.667,235 


2.134,234,861 


1881 


1,031,731,043 


891,961,142 


261,362,303 


111,670,329 


241.845,554 


2,538,570,371 


1882 


1,066,707,249 


966,797,081 


281,775,496 


144,841.596 


295,622,160 


2,755,743,682 


1883 


1,043,137,763 
979,020,350 


1,024,856,787 


334,995,702 


165,378,515 


! Not I 




1884 


1,073,294,955 


325,365,669 


188 745.922 




1885 


1,106,376,517 


1,095.172,147 


344.307,916 


188,417 293 


j stated. J 
96,580.457 




1886 


1,146,246,911 


1,141,680,578 


342,882,767 


214,063,415 




1887 


1,285,076,979 


1,235,247,371 


447.995,653 


240,190.711 


3,305,091,171 


1888 


1,292,842,471 


1,364,196,550 


410,047,842 


257,878,114 


94,878,842 


3.419,343,819 


1889 


1.442,137,979 


1,425,230,349 


507,084.481 


299.612,899 


83,183,718 


3,757,249,426 


1890 


1,521,745,665 


1,524,844,506 


553,054,584 


336,456,492 


99,521,667 


4,035,622,914 


1891 


1.535,058,569 


1,623,079,749 


556,637,012 


355,330,080 


94,959,727 


4,165,065,137 


1892 


1,753,339,680 


1,712,769,026 


648.513.8o9 


411,659,996 


93,091,148 


4,619,373,659 


1893 


1,566,761,230 


1,785,150,957 


706,865.643 


486,244,079 


68 652,696 


4 603,574,605 


1894 


1,677,801.201 


1,747,961,280 


658,107,494 


471,298.816 


66,074,549 


4,621, 243,340 


1895 


1,736,022,007 


1 810,597,023 


712,410,423 


546,652,657 


81,824.932 


4,887,507.042 


1896 


1,668,413,508 


1,907.156,277 


695,659,914 


586,468,156 


59,116,878 


4 916 814 233 


1897 


1,770,480.663 


1.939,376,035 


723,640,795 


566,922,205 


50,278,243 


5.050,697,841 


1898 


2,023,357,160 


2.065,631,298 


912,365,406 


662.138,397 


62,085.084 


5.725,577 345 


1899 


2,522,157,609 


2,230,366,954 


1,164,020,972 


835.499 064 


64,974,392 


6,817,018.891 


1900 


2.458,092,758 


2.449,547.885 


1,266,735,282 


1.028,232,407 


96.206.-049 


7.298.814,381 


1901 


2,941,837,429 


2,597,094,580 


1,610,502,246 


1,271,081,174 


118,621,903 


8,539.137,332 


1902 


3 098,875,772 


2,750,177,290 


1,698,185,287 


1,525,887,493 


131,669,948 


9.204.795 790 


1903 


3,200,993,509 


2,935,204,845 


t, 814,570,163 


1 ,589,398,796 


133,217,990 


9.673,385,308 



WEALTH AND PUBLIC DEBTS. 

[Wall Street Journal.] 

A public debt has been considered by many writers as an 
element of strength to a government, especially if that debt is 
held by the citizens of the country creating it. It serves to 
promote patriotism, and to safeguard the government against 
revolution. But there is undoubtedly a point at which a Govern- 
ment debt, instead of being an element of strength to the country, 
becomes an element of weakness. That point represents an aggre- 
gate of debt which becomes burdensome to the people by being 
out of proportion to the wealth of the nation and to its reasonable 
capacity for raising Government revenue. 

It becomes therefore of interest to compare the debt of the 
leading nations with their estimated wealth, and their popula- 
tion and revenue, with the view of ascertaining whether any of 
them have reached the point of weakness. The following tables 
show the population, the aggregate of funded and floating in- 
debtedness, the yearly revenue, and the estimated wealth of seven 
leading countries of the world : 





Population. 


Revenue. 


Debt. 


Wealth. 


United States 

United Kingdom . 

France 


80.372.000 
41.961,000 
38.962,000 
141,000,000 
45,405,000 
32,457,000 
18,618,000 


$694,621,000 
737,526,000 
695,276,000 

1,101,107,000 
75,896,000 
375,000,000 
197,077.000 


$925,011,637 
3,885,000.000 
5,856,706,400 
3,414,000.000 
1,107,464,025 
2.560,605,000 
2,061,389,970 


$94,300,000,000 
59.000.000,000 
48,000,000,000 
32,000.000,000 
22,000,000,000 
15,000,000,000 
12,000,000,000 




Austria-Hungary 

Italy.... 







The statistics of population, debt and revenue as given in the 
foregoing tables, are taken from the figures published by the 
^Bureau of Statistics at Washington: The statements of wealth 
are estimates of recent years, but must of course be regarded as 
.merely estimates, for any accurate figures bearing upon that 
point are practically impossible. It is quite likely that these 
statements, while in the main fair, really underestimate in some 
degree the actual wealth of the different countries. 

It appears, therefore, that the debt of the United States is less 
than 1 per cent of its estimated wealth ; that of England is about 
6% per cent; that of Russia 10 per cent; that of France 12 per 
cent ; while that of Italy is 17 per cent. 



110 



PROSPERITY. 



NATIONAL BANKS FROM 1863 TO 1903. 

This table presents a statement of the number of national 
banks organized in the United States in each year from 1863 to 
1903, the number in voluntary liquidation, and their capital, the 
number of insolvent banks and their capital, the net yearly in- 
crease and the net yearly decrease in capital. This table is espec- 
ially suggestive as illustrating conditions during the period from 
1893 to 1897. The number of banks established fell off more than 
one-half immediately following the year 1893; the number of 
insolvent banks, which had never been more than 25 in any year 
prior to 1893, was in that year 65, and the capital involved 10 
million dollars; and while in years prior to Democratic control 
there had been a net increase from 6 millions to 30 millions of 
dollars per annum, there was during the entire Democratic period 
a yearly decrease ranging from 5 to 11 million dollars per annum. 
A study of conditions since the return of Republican control and 
the protective tariff, and especially those since 1900, is also sug- 
gestive and will prove of value in meeting the assertion that pros- 
perity is "fictitious," since the capital of newly organized banks 
now averages six times as much annually as during the Demo- 
cratic period. The very large increase in the number organized 
since 1900 is, of course, due in part to the enactment in 1899 of 
the law permitting national banks to organize with a capital of 
$25,000, and under this law the number of national banks now 
being organized annually is ten times as great as the annual aver- 
age during the second administration of President Cleveland, and 
the total capital about eight. 

National banks organized since the establishment of the national 

banking system. 

[From the report of the Comptroller of the Currency.] 









Closed. 


Net yearly 
increase. 






Year. 


Organized. 


In voluntary 
liquidation. 


Insolvent. 


decrease. 




No. 


Capital. 


No. 


Capital. 


No 


Capital. 


No. 


Capital. 


No. 


Capital. 


1863 


134 

453 

1,014 

62 

10 

12 

9 

22 

170 

175 

68 

71 

107 

36 

29 

28 

38 

57 

86 

227 

262 

191 

145 

174 

225 

132 

211 

307 

193 

163 

119 

50 

43 

28 

44 

56 

78 

383 

394 

470 

553 


$16,378,700 

79.366.950 

242,542,982 

8,515.150 

4.260,300 

1,210,000 

1.500.000 

2.736,000 

19.519,000 

18,988,000 

7,602,700 

6,745,500 

12,104,000 

3,189,800 

2,589,000 

2,775,000 

3.595.000 

6.374.170 

9.651.050 

30.038.300 

28.654,350 

16.042,230 

16,938.000 

21,358,000 

30,546,000 

12,053.000 

21,240.000 

36.250,000 

20.700.000 

15.285.000 

11.230,000 

5,285,000 

4,890,000 

3,245.000 

4,420.000 

9,665,000 

16.470,000 

19,960,000 

21,554.500 

31,130.000 

34.333.500 










134 

450 

1,007 

56 


$16,378,700 

79,366.950 

242,162.982 

7,365.150 

930.300 






1864 


3 
6 

4 
12 
18 
17 
14 
11 
11 
21 
20 
38 
32 
26 
41 
33 

9 
26 
78 
40 
30 
85 
25 
25 
84 
41 
50 
41 
53 
46 
79 
49 
37 
70 
69 
64 
43 
39 
71 
72 












1865 


$330,000 

650.000 

2,160.000 

2,445,500 

3,372.710 

2,550.000 

1.450.000 

2,180.500 

3.524,700 

2,795.000 

3.820.200 

2.565,000 

2.539,500 

4.237,600 

3,750.000 

570,000 

1,920.000 

16.120.000 

7.736,000 

3.647.250 

17,856.590 

1,661.100 

2,537.450 

4,171.000 

4.316.000 

5.050,000 

4.485.000 

6.157.500 

6,035.000 

10,475.000 

6,093.100 

3.745.000 

9,659,000 

12,509,000 

24,385,000 

12.474.950 

7,415.000 

22.190.000 

30.720.000 


1 
2 
6 
4 
1 
1 


$50,000 
500,000 
1,170.000 
410.000 
50.000 
250.000 






1866 






1867.. .... 


8 
10 
9 




1868 


$1,645,500 


1869 






1,922,710 


1870 


7 
159 
158 
36 
48 
64 




64,000 


1871 


18.069.000 
15.001.400 
263.000 
3.700.500 
7.283.800 






1872 


6 
11 
3 
5 
9 
10 
14 
8 
1 


1,806,100 
8,825,000 

250,000 
1,000.000 

965,000 
3.844,000 
2.612,500 
1,230.000 

700,000 






1873 






1874 






1875 






1876 


5 

7 
27 
8 


340,200 


1877 






8.294.500 


1878 






4,075.000 


1879 






1,385,000 


1880 


45 

60 
146 
220 
150 

56 
141 
192 

90 
168 
248 
127 

93 
8 


5.104,170 

7.731.050 

12.357.000 

20,668.350 

11.109,980 




1881 






1882 


3 

2 

11 

4 

8 

8 

8 

2 

9 

25 

17 

65 

9 1 


1,561.800 
250.000 

1,285.000 
600.000 
650,000 

1,550.000 

1,900.000 
250.000 
750.000 

3.622,000 

2.450.000 
10.935.000 

2.770.000 






1883 






1884 






1885 




1,518,590 


1886 


19.056.900 
26.458.550 

5.982,000 
16.674.000 
30.450,000 
12.593,000 

6.677.500 






1887 






1888 






1889.. . 






1890. 






1891 






1892. 






1893 

1894 


"50 
42 
36 
65 
19 


5,740,000 
7,960.000 


1895 


36 
27 
38 

7 
12 

6 
11 

2 
12 


5.235.020 
3^05.000 
5.851.500 
1,200,000 






6,438.120 


1896 






4.305.000 


1897 






11.090,500' 


1898 






4,044.000 


1899 


850.000 


9 




8,715,000 


1900. 


1.800.000 334 

1,760.000 344 

450.000 397 

3.480.000 469 


5.685.050 

12.379,500 

8,490,000 

133,500 






1901.. 






1902.. 






1903 












Aggre- 
gate.. 


7,029 


860.931.182 


1.483 


260,239.560 


418 


71,167,4205,409 


592.062.332 


281 


62,538.120 



PROSPERITY. 



Ill 



Money In Circulation In the United States, 1800 to 1004. 

This table shows the various kinds of money in circulation in 
the United States from 1800 to 1904. In the period prior to 1860 
the figures are given for decennial years only ; from 1860 to 1880 
by quinquennial years, and since 1880 are given for each year. It 
will be noted that the growth in total and per capita was very 
slow prior to the protective period and that there was a great 
reduction in total and per capita during the recent low tariff 
period. Attention is also called to the fact that the total money 
in circulation has increased about 66 per cent, since the Demo- 
cratic party insisted in 1896 that only the free and unlimited 
coinage of silver would give a proper increase in the circulating 
medium. It will be seen, also, that a large share of the increase 
in circulation is in gold or in gold certificates which are the 
equivalent of gold. 



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112 



PR06PER1 I Y. 



Clearing-house returns of the United States, showing depression in 

low-turiff (Did Democratic years. 

[From the Statistical Abstract of the United States.] 



Year. 


— r- TT— -— 

New York clear- 
ing house. 


Clearinghouses 

of the 
United States. 


1880 


$37,182,128,621 
48,565,818,212 
46,552.846,161 
40,298,165,258 
:U. 002, 037, 338 
25.250,71)1,110 
33.37 1.682,216 
31.S72.HiS.7St; 
30.863.CH6.C0 1 .) 
34,796,405,529 
37.660.686,572 
34,053,698,770 
36,279,905,230 
34,421,380.870 
24,230,145.368 
28.264,379.126 
29,350,894.884 
31,337,760,948 
39.853,413,948 
57.368,230.771 
51,904 ..588.564 
77.020,672,494 
74,753,189,436 
70.833,655,940 


ft 
1 


1881 


1882 


1883 


1SS1 


(*) 


1885 » 


(*) 


1886 


$48 211,643,771 


1887 


52,126 704 488 


1888 


48 750 886 813 


1889 


53 501 411 510 


1890 


58 845 279 505 


1891 


57 298 737 938 


1892 A 

1893 1 


60,883,572,438 

58,880,682,455 


1894 1 


45 028 496 746 


1895 1 


50 975 155 046 


1896 1 


51.935.651.733 
54.179,545.030 
65 924 830 769 


1897 


1898 




88 828 672 533 


1900 i 


84 582 450 081 


1901 


114 819 792 086 


1902 


115 892 198 634 


1903 


114,068 837 569 







*No data. 



fDemocratic and low tariff years. 



Number and mileage of railroads placed under receiverships and 
sold under foreclosure during the calendar years 1876 to 1903. 

[From the Railway Age, Chicago.] 





Placed under receiverships. 


Sold under foreclosure. 


Years. 


Number 
of roads. 


Miles. 


Stocks and 
bonds. 


Number 
of roads. 


Miles. 


Stocks and 
bonds. 


1870 


42 

38 
27 
12 
13 
5 
12 
11 
37 
44 
13 
9 
22 
22 
26 
26 
36 
74 
38 
31 
34 
18 
18 
10 
16 
4 
5- 
9 


6,662 

3,637 

2,320 

1,102 

885 

110 

912 

1,990 

11,038 

8,386 

1,799 

1,046 

3,270 

3.803 

2,963. 

2,159 

10,508 

29,340 

7,025 

4,089 

5,441 

i;537 

2,069 

1,019' 

1,165 

73 

.278 

229 


$467,000,000 

220,294,000 

92,385,000 

39,367,000 

140,265,000 

3,742,000 

39,074,000 

108,470,000 

714,755,000 

385,400,000 

70.340,000 

90,318,000 

180,814,000 

99,064,000 

105,007,000 

84,479,000 

357,692,000 

1,781,040,000 

395,791,000 

309,075,000 

275,597,000 

92,909,000 

138,701,000 

52,285,000 

78,234,000 

1,027,000 

5,835,000 

' 18,823,000 


30 
54 
48 
05 
31 
29 

ie 

18 
15 
22 
45 
31 
19 
25 
29 
21 
28 
25 
42 
52 
58 
42 
47 
32 
24 
18 
18 
13 


3,8<*0 

3,900 
4,909 
3,775 
2.017 

807 
1,354 

710 
3.150 
7,087 
5,478 
1,596 
2.930 
3.825 
3,223 
1,922 
1,613 
5,643 
12,831 
13,730 
6.075 
0.054 
4,294 
3.477 
1.139 

093 

555 


$217,848,000 


U<77 


198,984,000 


1878 


311.C31.000 


1879 


243,288.000 


1880 


203,882,000 


'1881 


137.923.000 


1882 


05,420.000 


1883 


47,100,000 


1884 


23,504,000 


1885 


278.394,000 


1886 


374,109,000 


1887 

1888 


328.181.000 
04,555.000 


1889 


137,815.000 


1890 


182,495,000 


1891 


109.009.000 


1892 


95.898,000 


1893 


79,924,000 


1894 


318,999,000 


1895 


701,791.000 


1896 


1,150.377,000 


1897 


517,080,000 


1898 


252.910.000 


1899 


267,534,000 


1900 


190.374,000 


1901 


85,808,000 


1902 


39,885.000 


1903 


15.885.000 






Total 


652 


114.855 


0,415.055,000 


897 


112,374 


6.821.209.000 







Our country is growing; better, not worse. — Hon. C. W. Pair- 
banks, at Baldwin, Kas., June 7, 1901. 

In the ballot-box our liberties are compounded. See to it that 
it gives true expression to the public will. Preserve it from pollu- 
tion; protect and defend it as you would the Ark of the Covenant, 
for it has been purchased by the priceless blood of countless 
heroes upon the battlefields of the Republic. — Hon. C. W. Pair- 
banks, at Baldwin, Kas., June 7, 1901. 



PROSPERITY. 



113 



Bank Deposits In Each State in 1892 and 1903. 

The following table shows the total bank deposits in each 
State in 1892, the last year of President Harrison, 1896, the last 
year of Cleveland, and 1903 under President Roosevelt : 

Deposits in banks of all Icinds in the United States, 1892, J806 r 

and 1903. 
[Prom Official Reports of the Comptroller of the Currency.] 



States. 



Maine 

New Hampshire 

Vermont 

Massachusetts 

Rhode Island 

Connecticut 

New York 

New Jersey 

Pennsylvania 

Delaware „-. 

Maryland rr. . 

District of Columbia. 

Virginia 

West Virginia 

North Carolina 

South Carolina 

Georgia 

Florida 

Alabama 

Mississippi 

Louisiana 

Texas 

Arkansas 

Kentucky 

Tennessee 

Ohio 

Indiana 

Illinois 

Michigan 

Wisconsin 

Minnesota 

Iowa 

Missouri 

North Dakota 

South Dakota 

Nebraska 

Kansas 

Montana 

Wyoming 

Colorado 

New Mexico 

Oklahoma 

Indian Territory 

Washington 

Oregon 

California 

Idaho 

Utah 

Nevada 

Arizona 

Alaska 



65.850,798 

80,435,557 

33,748,904 

616.598,531 

99,066.388 

165,415,581 

417.556,006 

98.891,294 

423,548,016 

10,121,401 

83.219,217 

15,670,372 

29,693,500 

11,037,899 

8,461,372 

9,849,188 

15,363,576 

5,740,494 

7.661,421 

7.093,530 

26,308,565 

34,120,225 

4,563,594 

49,603,578 

24,543,584 

175,952,224 

54,206,771 

226.801,889 

107,704.951 

79.738,823 

76.795,498 

85,460,606 

117,478,165 

8,278,548 

7.551,266 

43,770,311 

38,514,219 

16.515.264 

3,167,147 

33,827,434 

3,104,956 

723.968 

309,119 

17,807,584 

12.647,373 

198.024,954 

2.006,760 

9,213.285 

412,320 

758,212 



$ 75,804,424 

71,921,727 

40,572,077 

705,759.418 

110.535,846 

188.712,003 

1.604.236,105 

115,583,033 

459,041,848 

7,019,958 

87,354,355 

18.677,413 

28,243,822 

17,745,571 

9,722,451 

9,890,679 

10.952,349 

5,531,365 

6,856,065 

8,908,660 

25,306,751 

31,747,215 

3.555,383 

41,502,038 

21,722,670 

174,954.981 

52.386,403 

213,798,711 

103,670,827 

68.863,503 

68,494.642 

78.439,707 

117,150,075 

7.032,369 

7.216,612 

30.865,894 

30,529,481, 

16,800,929 

2,650,866 

29,966,835 

2,311.296 

755,519 

704,202 

9.228.843 

9,262,021 

; 202,874,270 

1,969.292 

6,366.103 

579,731 

1.548.074 



$ 112.447.981 

78,453.488 

56,386,990 

938,627.298 

155,644,733 

264,131,827 

2.861,024,291 

254.960,170 

1,011,947.132 

19,592,430 

144,703.712 

37.916,326 

59,993,002 

50.387.589 

28,224,670 

16,584.452 

43,053.919 

16,535,101 

19,963,480 

29,174.325 

63.450.271 

80,389.641 

14,458,572 

68,501,184 

62,183,036 

448,120,819 

141,601,752 

522,889,978 

218,432,300 

156,140,971 

135,564,105 

211.033,378 

298,747,005 

22,147,222 

27.801,725 

80,565.404 

84,055.110 

32.023,515 

7,821,629 

69,739.278 

7,249,032 

18,677,080 

8,433.629 

53,242,953 

26.039.463 

406,532,343 

7,849.030 

33,526,202 

4,107,492 

8,458.306 

893,913 



Total i $240,870,488 $231,828,339 $540,649,702 



Aggregate, United States only, $9,530,429,252. 
Annual increase in individual deposits, 1892-1896, $ 70,000,000. 
Annual increase in individual deposits, 1896-1903, $657,000,000. 

Commercial Failures., 1880 to 1903. 
The table which follows shows the number of failures, the 
number of business concerns, the percentage of failures, the 
total liabilities of failing firms, and average liabilities, in each year 
from 1880 to 1903, as shown by Dun's Review, a reliable and 
nonpartisan publication. The table needs no discussion, though 
attention is called to the fact that in no year since 1897 has the 
number of failures or the amount of liabilities been as great as the 
lowest record of the four years' period under President Cleve- 
land and low tariff, threatened or actual. The annual average of 
the liabilities of failing firms during the four years 1893, 1894, 
1895, and 1896 was 230 million dollars, and during the four year -; 
ending with 1903 was 131 million dollars, in spite of the fact 
that population -at the end of the second period was 80 millions, 
against 70 millions at the close of the first period. Thus while 
population increased 14 per cent, the liabilities of failing firms 
decreased 40 per cent. 



114 



PROSPERITY. 



Commercial failures and average of liabilities, 1880 to 1903. 
[From Dun's Review, New York. | 



Calendar year. 



Total for the year. 



Number 
of failures. 



Number of 


Per ct. 


business con- 


of fail- 


cerns. 


ures. 


746.823 


0.63 


781.689 


.71 


822.256 


.82 


863,993 


1.06 


904.759 


1.21 


919.990 


1.16 


969,841 


1.01 


994,281 


.90 


1,046.662 


1.02 


1.051.140 


1.04 


1,110.590 


.98 


1,142,951 


1.07 


1,172,705 


.88 


1,193,113 


1.39 


1,114,174 


1.26 


1,209,282 


1.09 


1,161,079 


1.31 


1,058,521 


1.26 


1,105.830 


1.10 


1,147,595 


.81 


1.174,300 


.92 


1,219,242 


.90 


1,253,172 


.93 


1,281,481 


1.12 



Amount of 
liabilities. 



Average 

liabilities. 



1881 . . 
1882.. 
1883.. 
1884.. 
1885.. 
1886.. 
1887.. 
1888.. 
1889.. 
1890.. 
1891.. 
1892.. 
1893* 
1894* 
1895* 
1896* 
1897.. 
1898.. 
1899.. 
1900.. 
1901.. 



4.735 

5.582 

6.738 

9.184 

10.968 

10,637 

9.834 

9.634 

10.676 

10,882 

10.907 

12,273 

10,344 

15,242 

13,885 

13,197 

15,088 

13,351 

12,186 

9,337 

10,774 

11,002 

11,615 

12,069 



$65,752,000 

81.155,932 

101,547,564 

172.874.172 

226,343,427 

124,220,321 

114,644.119 

167,560,944 

123,829,973 

148,784.337 

189,856,964 

189.868,638 

114,044,167 

346,779,889 

172,993,856 

173,196,060 

226,096,834 

154.332,071 

130,662,899 

90,879,889 

138,495,673 

113,092,376 

117,476,769 

155,444,185 



$13,886 

14,530 

15,070 

18,823 

20,632 

11,678 

11.651 

17.392 

11,595 

13.672 

17.406 

15,471 

11,025 

22,751 

12,458 

13,124 

14,992 

11,559 

1U.722 

9,733 

12,854 

10,279 

10,114 

12,879 



♦Democratic and low-tariff period. 
Value of the Principal Farm Crops of the United States in 1899 and 
1903 Compared with 1893 — Farm Value of Ten Principal Crops 
Increased More Than $1,000,000,000 since 1895. 

This table shows the value of the principal farm crops of the 
United States in 1895, 1S99, and 1903, and illustrates forcibly the 
importance of protection to the farmer. The values of ten prin- 
cipal crops are stated. It will be seen that in every case there 
has been a large increase and in some cases the value has prac- 
tically doubled, while the total value of the ten articles named is 
62 per cent, greater in 1903 than in 1895. Here is a gain of over 
one billion dollars ($1,215,596,903) in the value of these ten ar- 
ticles of farm production for the single year 1903 compared with 
1895. 

The figures are from the Department of Agriculture, except 
those of flax, for each year, and those of cotton for the year 1903. 





1895. 


1899. 


1903. 


Crop. 


Total value. 


Value 
per. 
unit. 


Total value. 


Value 
per 
unit. 


Total value. 


Value 
per 

unit. 


Corn 

Wheat 

Oats 

Rye 

Barley 

Potatoes. . . 

Cotton 

Hay 

Tobacco... 
Flax 


$544,985,534 

237,938.998 

163,655,068 

11.964,826 

29,312.413 

78.984,901 

260,338,096 

393,185.615 

35.574,220 

12,000.000 


$0,253 
.509 
.199 
.440 
.337 
.266 
.076 
.835 
.069 
.750 


$629,210,110 

319,545.259 

198.167,975 

12,214,118 

29,594.254 

89,328,832 

332,000,000 

411.926,187 

45,000.000 

24.000.000- 


$0,303 
.584 
.249 
.510 
.403 
.390 
.070 
.727 
.090 
.125 


$952,868,801 
443,024.826 
267,661,665 
15,993,871 
60,166,313 
151,638,094 
460,000,000 
556,376,880 
55,514.627 
*22.291,557 


$0,425 
.695 
.341 
.545 
.456 
.614 

'.908 ' 

.068 

.817 




1.767,939,671 




2 090 986 735 1 


2,985,536,634 













♦Estimate of Department of Agriculture. 
To appreciate what this means to each individual stock owner 
note the change in the average price per head of each class of 
animals : 





Jan. 1, 1897. 


Jan 


1.1904. 




$31.50 

41.66 

23.16 

16.65 

1.82 

4.10 




$67.93 


Mules 


78.88 




29.21 


Cattle 


16.32 


Sheep 


2.59 


Hogs 


6.15 







PROSPERITY. 



115 



Expenditures of the United States Compared with Those of Other 

Leading Nations — Our Per Capita Much Below That of 

Principal Countries of the World. 

The expenditures of the United States Government are much 
less in proportion to population than those of many other of the 
! leading nations of the world. This fact is shown by a statement 
published by the Department of Commerce and Labor, through its 
! Bureau of Statistics, showing the population, revenues, expendi- 
tures, and indebtedness of the principal countries of the world. 
It shows that while the expenditure of the United States, with 80 
millions of people, is G40 million dollars, that of the United King- 
dom, with 42 millions of people, is 898 million dollars; that of 
France, with 39 million people, is 695 million dollars ; that of Ger- 
many, with 58 million people, 553 million dollars ; while in prac- 
I tically every country aside from China and India, with their 
enormous population, the per capita of government expenditures is 
: greater than in the United States. Even in the case of Russia, 
! with its population of 141 million, the per capita of government 
i expenditure is about the same as that of the United States. 

While it is true that a larger proportion of public expenditures 
is borne by State and local governments in the United States than 
in many of the more centralized governments of Europe, these 
figures of the relative national expenditures of the various govern- 
ments are at least interesting at the present time. 

The table puts the population of the United States at 80,372,000, 
j the Government expenditure in 1903 at $040,323,000, and the per 
; capita expenditure $7.97. The per capita government expenditure 
: of Canada is given at $9.30; the German Empire, $9.45; Italy, 
■ $10.97 ; Austria-Hungary, $14.27 ; Belgium, $17.40 ; France, $17.84 ; 
; the United Kingdom, $21.39, and Australia, $37.69. Russia's an- 
I nual expenditure is put, for the latest available year, at $1,116,- 
'■ 095,000, as against $644,883,000 in the United States ; but the fact 
| that Russia's population is given at 141 million brings the per 
capita expenditure to about the figure shown by the United States. 
The table in question also shows in the case of each country 
the excess of revenue or expenditure in the latest available year, 
and in this particular the United States also presents a satisfac- 
tory showing, the excess of revenues over expenditures being 
greater than that of any other country, while in many countries 
! the expenditures exceed the revenues. For the latest available 
year the United States shows an excess of revenues over expendi- 
tures amounting to 50 million dollars, while France shows an ex- 
cess of revenues amounting to only $26,000; Germany, an excess 
of expenditures over revenues amounting to 57 million dollars, and 
the United Kingdom an excess of expenditures over revenues 
amounting to 160 million dollars. 

The table which follows shows the population, expenditure, and 
per capita expenditure in the more important countries of the 
world in the latest available year. Most of the statements are for 
1902, that of the United States for 1903. 



Countries. 



Population. 


Expenditure. 


788,000 


$30,441,000 


3.772,000 


142,148.000 


41,961,000 


897,790,000 


38,962,000 


695,250,000 


6,694,000 


116,500,000 


636,000 


11,007,000 


46.406.0C0 


647,969,000 


4,794,000 


60,757,000 


1,573,000 


19,515,000 


5,347,000 


61,468 000 


5.429,000 


62,170,000 


18,618,000 


187,846,000 


5,199,000 


49,593,000 


58,594 000 


553.222,000 


5.457.000 


60.759,000 


80,372,000 


640,323,000 



Per capita 
Expenditure 



New Zealand 

Australian Commonwealth 

United Kingdom 

France 

Belgium 

Paraguay 

Austria-Hungary 

Argentina 

Cuba 

Netherlands 

Portugal 

Spain 

Sweden 

German Empire 

Canada 

United States .-. 



$38.38 
37.69 
21.39 
17.84 
17 40 
17 30 
14 27 
12.68 
12.40 
11.49 
11.45 
10 09 
9.54 
9.45 
9.30 
7.97 



Every man who lias made wealth or used It in developing: 
{great legitimate business enterprises has been of benefit and not 
harm to the eountry at large. — President Roosevelt at Spokane, 
Wash., May 26, 1903. 



11G 



l'KOSIM Kl I 1'. 



COMPARISON OF FINANCIAL, COMMERCIAL AND INDUS- 
TRIAL CONDITIONS IN THE UNITED STATES IN v i8 9 a 
1896, 1900 AND 1903. 

This table is intended to show the contrast in conditions in the 
United States under Republican and Democratic administrations. 
The indebtedness, interest charge, money in circulation, bank de- 
posits, commerce, agriculture and the value of its products, manu- 
facturing, railway operations, and other measures of business and 
commercial activity and prosperity are shown for the years 1892, 
189G, 1900, and 1903. The year 1892 was the last under President 
Harrison, 1896 the last under President Cleveland ; and while the 
McKinley-Roosevelt term has been continuous and one of continu- 
.ous prosperity, conditions in the year 1900, the last full year of 
President McKinley's life, are shown, since the comparison of 
conditions in 1903 with those in 1900 shows that prosperity and 
activity have continued under President Roosevelt and that the 
assertions that business has not prospered under the present ad- 
ministration are not true. No detailed explanation or comment 
upon the table is necessary. .It speaks for itself and is in itself 
evidence of Republican prosperity and Democratic adversity. 

The figures of the table are in all cases official and in most 
instances arc those of fiscal years. 



Financial, 



commercial, and industrial conditions in the United 
States, 1892, 1896, 1900, and 1903. 



ITEMS. 



1896. 


1900. 


1903, 


70.365.000 


76.303.000 


80,487.000 


847,363,890 


1,023,478,860 


914,541,410 


34,387,266 


33,545,130 


25,541,573 


49 


44 


32 


152,158,617 


233,164,871 


284,479,582 


326,976.200 


567.240,852 


560,396,674 


316,794,417 


447,553.458 


477,542,658 


102.494,781 


222,844.953 


254,162,230 


497.103,183 


811,539,491 


994,519.298 


1,506,434,966 


2,055,150,998 


2,367.692.169 


21.41 


26.94 


h 30.38 


29,350,894.884 


51.964,588,564 


70,833,655,940 


51,935,651,733 


84,582,450,081 


114.068,837,569 


91,71.642.012 


2.623,512,201 


3,415,045.751 


5.065,494 


6,107,083 


7.305,228 


1.907,156.277 


2,449,547,885 


2,935,204,845 


4,916,814,233 


7,298,814,381 


9,673,385,303 


888,266,586 


1,468,986,366 


al. 806.890,864 


5,943.067.492 


8.562,138,746 


10,508,478.776 


779.724.674 


849,941,184 


1,025,719.237 


10.66 


10.88 


12.54 


882,606,938 


1.394,483,082 


1,420,141.679 


12.11 


17.96 


17.64 


102,882.264 


544.541.898 


394,422,442 


281,302,206 


379,926,075 


480,828.386 


228,571,178 


433,851,756 


407.526,159 


26.48 


31.65 


29.28 


569,879,297 


835.858,123 


873.322,882 


131,503,590 


184,453,055 


179,839,714 


42,827.258 


108,305,152 


bl06,771,591 


2,102,094 


4,260,890 


11,976.134 


3.985,707 


13,077.506 


10,787,666 


162,446 


2,635,624 


4,028.677 


1,727,926,084 


2,228.123,134 


3,102.515,540 


500,140,186 


603,969,442 


1,030.705.959 


872,883.961 


1.204,298,366 


1,340,766,816 


103.204,457 


111.717,092 


197.753,327 


186.529,745 


185,472,321 


364.973,688 


65.107,135 


122.665,913 


168,315.750 


38,298,783 


41,883.065 


63,964,876 


1.70 


2.93 


2.63 


1,432,396,852 


1.861.466,582 


2,456,381.183 


491,006,967 
310,602,539 


751 220,034 


952,868.801 


323,515.177 


443.024.826 


132.485,033 


208,669.233 


267,661,665 


388,145,614 


445.528,870 


556,376,880 


72.182,350 


90,811,167 


151,638,094 



Population^. 65.191.000 

Interest-bearing debt $585,029,330 

Annual interest charge $22,893,883 

Annual interest' per cap. Cts 35 

Receipts from customs $177,452,964 

Treasury receipts, net ordi- 
nary $354,937,784 

Gov't expenditrs, (j ) $321,645,214 

Gold in treasury $114,612,892 

Gold and gold certificates in 

circulation $549,662,443 

Money in circulation $1,601,347,187 

Money in circulat'n, per cap. $24.56 

Bank clearings. New York.. $36,279,905,236 
Bank clear'gs. total, U. S. ..$60,883,572,438 
Loans and discounts.nat'l 

banks $2,127,757,191 

Savings bank deposit'rs.No. 4,781,605 

Savings bank deposits $1,712,769,026 

Bank deposits, total $4,619,373,659 

Industrial life insurance in 

force * $583,527,016 

Total life insurance in force. $4,897,731,359 

Imports $827,402,462 

Imports, per capita $12,44 

Exports $1,030,278,148 

Exports, per capita $15.53 

Excess of exports over im- 
ports $202,875,686 

Imports of mf r's materials. . $278,319,966 
Exports of manufactures. . . $159,510,937 
Share mf r's form of ex- I 15 61 

ports % S 

Exports of ag'l products .... $798,328,232 

Exports of provisions $140,362,159 

Exports to Asia and Oceania. $35,163,117 

Exports to Porto Rico $2,856,003 

Exports to Hawaii $3,781,628 

Exports to Philippine Isles,. $60,914 

Animals on farms, total 

value $2,461,755,698 

Horses $1,007,593,636 

Cattle.... $922,127,287 

Mules $174,882,070 

Swine $241,031,415 

Sheep..... $116,121,290 

Sheep, total in U. S No. 44,938.365 

av. value per head... $2.60 

Farm products, value i $1,826,989,201 

Corn. $642,146,630 

Wheat $322,111,881 

Oats $209,253,611 

Hay $490,427,798 

Potatoes $103,567,520 



PROSPERITY. 



117 



Financial, commercial, and industrial conditions in the 
States, 1892, 1896, 1900, and 1903— Continued. 



ITEMS. 



1892. 



Wool production lbs 294.000.000 

Wool value $79,075,777 

Cotton production, value $313,000,000 

Beet-sugar production — Tons 12,000 

Mineral production, value $648,675,081 

Coal production -Tons 160,115.242 

Furnaces in blast No. 253 

Pig-iron production Tons 9,157,000 

Steel rails mfg Tons 1.298.936 

Steel manufactured Tons 4,927,581 

Exports of iron and steel $28,800,930 

Tin plates manufactured.. lbs. 42,119,192 

Tin plates imported lbs. 422, 176.202 

Pig tin imported Pounds 43,908,652 

Domestic cotton used in mfg 

Bales 2,856,000 

Silk imported for mfg lbs. 8,642,828 

Hides and skins import $26,850,218 

Rubber imported for mfg . . lbs. 39,976.205 

P. O. Dept. receipts of $70,930,476 

Telegraph messages sent. .No. 71.722.589 

Telephone subscribers No. 216,017 

Patents issued No. 23,559 

Failures No. 10.344 

Failures, liabilities $114,044,167 

Original homestead entries 

Acres e 6,808,791 

Railways built Miles 4,441 

Railways, net earnings $352,817,405 

Railways, dividends paid $93,862,412 

Railways, employees No. 821,415 

Railways, wages paid $440,318,900 

Railways, freight carried. Tons 730,645,011 
Railways, passengers carried 

No. 575,769,678 

Railways, f r'g't rec'ts ton per 

mile Cents 94 

Railways sold under foreclos- 
ure .' Miles 1,922 

Freight passing Sault Ste. 
Marie canals Tons 10,647.203 

PBICES (ANNUAL AVERAGE), j 

Wheat, in New York.. per bush .540 

Corn, in New York per bush .363 

Oats, in New York per bush 4.34 

Flour, patent Barrel 5.15 

Hogs, in Chicago 100 lbs 7.87 

Bacon 100 lbs 4.50 

Steers, in Chicago 100 lbs 7.62 

Beef, fresh native, sides. 100 lbs .043 

Sugar, granulated Pound .143 

Coffee. Rio No. 7 Pound .301 

Tea, Formosa, fine Pound 2.50 

Men's shoes, vici kid Pair 1.037 

Men's shoes, brogan Pair .065 

Calico, "Cocheco" Yard 

Serge suitings Yard .91 

, Alpaca dress goods Yard .072 

Wool, Ohio XX Pound .611 

Coal, anthracite Ton 3.94 

Coal, bituminous, at mine. . Ton .90 

Petroleum, refined Gallon .07 > 

Pig. iron, foundry No. l....Ton 15.74 

Wire nails 100 lbs 2.1 > 

Cut nails 100 lbs 1.7 

Tin plates 100 lbs 5.: 

Steel rails Ton 30.( 

Steel billets Ton 23.< , 

Rope, manila Pound . i 



a 1902. 

b Including 1 Hawaii. 

c Includes corn, wheat, oats, 
barley, rye, buckwheat, potatoes, 
and hay. 

d Includes statistics of Amer- 
ican Telephone and Telegraph 
Company and operating com- 
panies associated with it. 

e 1893. 

f 1895. 



1900. 



272,474.000 


288.636,000 


32,529.536 


45,670,053 


269.116.000 


357,000,000 


40,000 


82,000 


622,533,016 


1,063.620,548 


171,416,393 


240,780,238 


159 


232 


8,623,129 


13,789,242 


1,300,325 


2,271,108 


5,281.689 


10,188,329 


41,160,877 


121,913,548 


359.209,798 


677,969,600 


385,138,983 


147,963,804 


49,952,957 


70,158,915 


2,505.000 


3,644,000 


9,084,920 


13.043.714 


30,520,177 


57,935,698 


36,774.460 


49,377,138 


82,499,208 


102,354,579 


72,221,896 


79.696,227 


281,695 


632,946 


23,273 


26,499 


15,088 


10,774 


226,096.834 


138,495,673 


4,830,915 


8,478,409 


1,704 


3,516 


332,766,979 


483,247,526 


81,528,154 


140,343,653 


f 785,034 


1,017,653 


f 445,508.261 


577,264,841 


773,868,716 


1.071,431.919 


535,120.756 


584,695,935 


82 


75 


13.730 


3,477 


17,249,418 


22,315,834 


.340 


.453 


.233 


.273 


3.79 


3.84 


3.35 


5.08 


4.94 


7.52 


4.27 


5.39 


6.98 


8.04 


.045 


.053 


.123 


.082 


r .258 


.297 


2.25 


2.00 


.993 


.937 


.052 


.052 


.614 


.810 


.064 


.071 


.394 


.659 


3.55 


3.91 


.90 


1.20 


.104 


.118 


12.95 


19.98 


2.92 


2.63 


2.71 


2.25 


3.43 


4.67 


28.00 


32.28 


18.83 


25.06 


.066 


.132 



g 1892 figures are for im- 
ported tin; those of subsequent 
years of domestic manufacture. 

h December 1. 

i Except cotton. 

j Prices of farm products 
are those of Chicago markets; 
Iron and steel, those of Pitts- 
burg; general merchandise, in 
most cases, those of New York, 
and in all cases are wholesale 
rates. 



Our -workshops never were so busy, our trade at borne was 
never so large, and our foreign trade exceeds that of any like 
period in all our history. — President McKinley at Chicago. Oct. 
10. 1899. 



118 



PR0S1MUI I 5f. 



Do Trust* Control PrlcfcH? 

Much has been said about the advance in prices, coupled with 
the assertion that the advances in cost of living is due to trust 
control and that the increase in prices has been more rapid than 
the advance in wages. This general question of wages, and the 
relation of wages to prices is discussed in the chapter on Labor, 
to which attention is especially called, but In addition to the 
facts there presented some statements with reference to the 
advance and more recent decline in prices is worthy of special 
attention. That statement, from official and recent reports of 
the Bureau of Labor, completely disproves the charge, and shows 
clearly the falsity of the Democratic assertion that cost of living 
has advanced more rapidly than wages. 

Another extremely important fact is the marked decline in 
prices in many articles during the present year, among these 
articles being many controlled by trusts and great industrial cor- 
porations, which are constantly charged by the Democracy with 
advancing prices and with ability to control the same. A table 
compiled from reports of the Bureau of Statistics shows the 
prices of principal articles of food and manufactures, in March, 
1004, compared with March, 1003: 



Articles. 



March, 1903. 


March. 1904. 


Dollars. 


Dollars. 


0.05% 


0.06% 


.84 


1.12 


.26 


.28 


.09 


.09% 


.08% 


.07% 


.04% 


.04% 


'.0362% 


.036 


4.45 


3.80 


.30% 


.289% 


23.10 


14.35 


21.00 


9.75 


.02 


.01% 


.016 


.014% 


32.50 


23.00 


28.00 


28.00 


1.50 


1.71 


.10% 


.113% 


.0462% 


.045 


.15 


.1287% 


.0467% 


.0462% 


.057 


.0512% 


4.00 


3.65 


.105 


.0725 


.10 


.07 


.05^ 


.04% 


19.00 


15.50 


15.00 


12.50 


.055 


.057% 


.043 


.050 


.050 


.046 


.12% 


.UK 


.31 


.33 


.81% 


1.07% 


JWH 


.58K 


.43% 


.48% 


.09)* 


■ UK 



Prices of imported articles. 

Coffee, Rio, No. 7 Pound 

Rubber do . . 

Japan tea (choice) do.. 

Manila hemp do . . 

Sisal do.. 

Jute do . . . 

Sugar, raw do . . . 

Silk, raw do . . . 

Tin. pig do... 

Prices of articles of domestic production. 

Pig iron: 

Bessemer ton. 

Southern do... 

Iron bars pound . 

Steel bars do 

Steel billets ton.. 

Steel rails do.... 

Petroleum: 

Crude barrel . . 

Refined gallon . . 

Sugar, refined pound.. 

Copper ■= do 

Lead do 

Zinc do 

Tin plate box.. 

Lard pound.. 

Oleostearine do — 

Tallow do — 

Pork, mess barrel . . 

Beef, family do.... 

Native steers pound.. 

Texas steers do — 

Cows do — 

Hides do.... 

Wool, Ohio XX do.... 

Wheat. No. 2 bushels 

Corn, No 2 do i . . .. 

Oats, No. 2 do.... 

Cotton pound . . 



Of the 40 articles named in this, table, practically all of those 
in which advances occurred are the natural products of the 
farm— wheat, corn, oats, and wool— in which the advances cannot 
be ascribed to the trusts; while practically all of the articles 
manufactured by trusts or great corporations, such as iron and 
steel, sugar, copper, tin-plate, show a marked reduction in March, 
1904, as compared with March, 1903. If the assertion that trusts 
are able to control prices were true, how is it that practically all 
of the trust-made articles in the United States have declined in 
price during the last year and that, too, during the very time 
when prices of farm products and prices of many of the articles 
imported for use in manufacturing were advancing? 

Attention is especially called to the fact that the single article 
of trust production in which an advance is shown is petroleum 



PROSPERITY. 



119 



both crude and refined, an article upon which no tariff duty is 
collected, and' in which therefore the assertion that trusts ad- 
vance and maintain high prices by reason of the tariff is not 
justified. In practically all of the articles in this table which are 
subject to duty, whether trust-made or otherwise, the prices in 
March, 1904, are less than those of the corresponding date of 
1903, while the single trust-made article upon the free list is the 
one in which an advance in price has been made 

Does the Tariff Control Prices? 

Upon this subject of relative advance in price of articles on 
the free list and those upon which a tariff is collected, a table is 
also presented which includes eleven articles on the free list and 
twenty-one articles on the dutiable list This table was pre- 
sented in the House of Representatives by Representative E. J. 
Hill, of Connecticut. Every article named in this table was in- 
cluded in the list of "articles controlled by trusts" published in 
the Democratic Campaign Text-Book of 1902, page 369. Of the 
11 articles on the free list every one shows a marked advance in 
price since 1896, the average advance on all being 53.54 per 
cent. Of the 21 items on the dutiable list, 12 show an advance in 
price, comparing 1904 with 1896; three show not change, and six 
show a reduction. The average advance on the dutiable list is 
8.6 per cent, as against 53.54 per cent on the free list. 

Statement in Congressional Record, February 18, 1904, by 
Hon. E. J. Hill, of Connecticut, showing the relative advance in 
prices of free and dutiable articles, respectively (denominated by 
the Democratic Campaign Book as "Controlled by Trusts"), 1896 
to 1904: 



Items on free list. 



July, 



July. 
1901. 



July. 
1902. 



July. 
1903. 



Janu- 
ary, 
1904. 



Anthracite stove coal (f. o. b. New 

York) per ton.. 

Anthracite broken coal (f. o. b. New 

York) per ton . 

Copper, lake, ingot (New York) 

per pound. 

Flax, Kentucky do — 

Jute, spot do — 

Petroleum, crude ( at well) per barrel . . 

Petroleum, refined per gallon. 

Petroleum, refined (150 per cent test 

for export) per gallon. 

Rubber, island per pound. 

Sisal, spot do — 

inder twine do. ... 



$3,881 

3.228 

.115 

.08 

.035 

1.0825 



.108' 
.84 



.0675 



$4,236 

3.509 

.17 
.10 
.035 
1.1337 



.0562 
.0975 



$0.1225 



1.22 
.074 



$4.80 
4.55 
.1425 



.045 
1.50 
.14 

.1005 
.87 
.0762 
.145 



$4.75 

5.00 

.125 



.045 
1.85 
.15 

.1405 
.94 
.075 
.145 



Items on dutiable list. 



July, 



July, 
1901. 



July, 



July 
1903. 



Janu 
ary, 
1904. 



Duty. 



Alcohol (94 per cent) .... per gal . . 

Brick per thousand'. . 

Bread, Boston crackers . . . per lb . . 
Cotton flannels per yard . . 

Cement, Rosendale per bbl . . 

Fish, canned salmon per doz . . 

Ginghams per yard.. 

Glassware, pitchers per doz.. 

Wire nails per keg . . 

Cut nails do 

Fresh beef sides per lb . . 

Salt beef per bbl.. 

Salt pork do.... 

Hams, smoked do — 

Pig iron, foundry, Philadelphia, 

per ton.. 

Rice per lb.. 

Sugar, centrifugal do — 

Sugar, granulated do 

Steel rails, Pittsburg — per ton . . 

Ashtonsalt per bush.. 

Tin plate percwt.. 



$2.31 
5.25 
.065 
.065 

.85 
1.65 

.0425 
1.25 
3.15 
2.90 

.075 
16.00 
8.25 

.10 

12.75 
.0525 
.035 



28.00 



2.10 
3.45 



12.43 
5.75 
.08 
.0625 

1.00 
1.70 

.0475 
1.30 
2.40 
2.10 

.09 
21.50 
16.75 

.115 

15.87 
.0537 
.0425 

.0524 

28.00 

2.25 
4.19 



$2.51 
6.25 



.95 
1.65 



$2.48 
5.25 



.OH 



.90 
1.65 



$2.40 

07 ' 



.95 
1.65 
.08 



2.10 
2.05 



22.50 

19.75 

125 

22.75 

0575 
0337 



2.05 

2.20 

1.25 
11.50 
17.75 
.1375 

18.50 
55 



.0475 
.00 



2.25 
4.19 



017 
28.00 



2.25 
4.00 



2.00 

1.95 

.125 

11.00 

13.50 

.12 

15.00 
.04 
.0347 

.0436 

28.00 

2.25 

3.80 



$2.25 per gal. 
25 p. c. 
20 p. c. 
50 p. c. and 

up. 
8c. per lb. 
30 p. c. 
45 p. c. 
40 p. c. 
He. per lb. 
6-lOc per lb. 
2c. per lb. 
5c. per lb. 
25 p. c. 
5c. per lb. 

$4 per ton. 
2c. per lb. 
$1,825 per 

cwt. 
$1.95 per 

cwt. 
$7.84 per 

ton. 
12c. per lb, 
l^c. per lb. 



1L'<) PROSP1 KM V. 

HKIiATlVK ( H-W.I-. IN BBtOJM "I' AKT1CLKH OF KAKM PRODUCTION AND FARM 
CONSUMPTION. 

Two additional tables on pages 144 and 145 show (1) the 
prices of Leading articles of farm production, and (2) the prices 
of leading articles of farm consumption. Attention is especially 
qalled t<> these and to the fact that they efcow in nearly nil cases 
a greater advance in prices of farm products than in prices of 
farm consumption, indicating that in this large and important 
class of thpse engaged in the great industries, earnings have 
grown more rapidly than the cost of living. These tables have 
been compiled, for the earlier years from the Aldrich tables on 
prices, and for the later period from prices tables prepared by 
the Bateau of Labor and Bureau of Statistics, being in all cases 
from' official figures. The prices of farm products are from the 
official publications of the Department of Agriculture. The 
prices of farm products are those on the farm; those of other 
merchandise are the wholesale prices in New York. In most 
cases the prices quoted are an average of the available quota- 
tions for the year; those of wheat, however, being the prices for 
December 1st of each year, and those of animals, for January 1st 
of each year. 

A study of these tables and the relative advance in prices of 
the leading articles presents some interesting facts, among them 
being the following: Wheat, which the farmer sells, shows an 
advance from 49.1c per bushel in 1894 to 69.5c in 1903, an in- 
crease of 40 per cent; while sugar, which is a staple article of 
purchase and consumption by the farmer (a trust-controlled 
article also) shows an advance from 4.12c per pound in 1894 to 
4.64c per pound in 1903, an increase of but 12.6 per cent, as 
against a 40 per cent increase in wheat. Corn shows an increase 
of 68 per cent from 1894 to 1903, while coffee increased but 59 
per cent meantime. Oats show an increase in price of 70 per cent 
from 1895 to 1903, and coal an increase of but 8.6 per cent. 
Horses show an increase of 71 per cent from 1895 to 1903, while 
nails, an article which the farmer must purchase, increased in 
the same time but 60 per cent Sheep show an increase of 67 
per cent from 1895 to 1903, and wool, an increase of 76 per cent; 
while carpets, made from the wool, show an increase of but 22 per 
cent meantime. Cotton shows an increase of 41 per cent from 1896 
to 1903; and shirtings, drills, sheetings, and prints averaged show 
an increase of but 13 per cent, as against an increase of 41 per 
cent in the price of the raw material" from which they are pro- 
duced. Hay shows an increase of 38 per cent from 1896 to 1903, 
and salt for the same period showed a decline of 6.4 per 'cent 
Swine show an increase of 41 per cent in price from 1896 to 1903. 
and mineral oil an increase of 37 per cent. Tobacco shows an in- 
crease from 1896 to 1903 of 15 per cent; men's brogan shoes show 
a decrease in the same period of 6.4 per cent Potatoes show an 
increase of 115 per cent from 1896 to 1903, while starch shows a 
decline of 1.1 per cent in price during the same period. 

SECRETARY JOB OE THE EMPLOYERS' ASSOCIATION ON RELATIVE ADVANCE IN 
WAGES AND COST OF LIVING. 

Two other tables— one showing the advance in prices of arti- 
cles of common use in # the household, and the other the advance 
in wages— were prepared ,by Mr. Frederick W. Job, secretary 
of the Employers' Association of Chicago. The table of prices, 
entitled "Cost of Diving in Chicago," was compiled in the latter 
part of 1903 and covers the first six months of 1903, which may 
be looked upon as the period of the very highest prices of the 
past few years, prices of nearly all articles having materially 
declined since that time. This table relates to the cost of living 
in Chicago in 1898 and*the first six months of 1903, as applied 
to workmen earning wages from $800 to $1,000 per year. It in- 
cludes in its grocery schedule, flour, sugar, coffee, tea, potatoes, 
butter, and eggs; and in its meat schedule, steak, beef, chops, 
breakfast bacon, ham, lard, and pickled pork. In the grocery 
schedule he finds an average increase of 5 per cent; in the meat 
schedule an average increase of 34 per cent; in the milk schedule 



PROSPERITY, 



121 



an increase of 20 per cent; in rents, about 20 per cent; in fuel, 
about 30 per cent; in clothing', a reduction of about 3 per cent; 
and from this he obtains an average increase in the cost of living 
in Chicago, over 1898, of 1G.8 per cent. Mr. Job's second table 
relating to wages "among the increases in rates of wages in the 
past few years in Chicago," truck teamsters, an increase of 30 
to 40 per cent; grocery-wagon drivers, 20 to 30 per cent; garment 
workers, of whom there are 10,000 in, Chicago, cutters, 40 to 50 
per cent advance; sewers, from 25 to 30 per cent; glove makers, 
from 20 to 25 per cent; railway street car employees, printers, 
brick layers, mastons, boiler makers, and supply-house clerks, 
20 per cent; box makers, 22 Mj per cent; electrical workers, men in 
lumber yards, and laundry workers, 25 per cent; harness makers, 
30 per cent; stockyard employees, 35 per cent; coal miners, 35 to 
45 per cent; and sheet metal workers and structural iron workers, 
17% per cent. It will be noted that in every one of these cases 
th^ increase in wages is greater than the average increase which 
he finds in the cost of. living, and in numerous cases the increase 
in wages is more than twice as great as the increase in cost of 
living. 

Greater Savings Show the Falsity of the Assertion That the Cost 
of Living Has Advanced More Than Earnings. 

Figures quoted elsewhere also call attention to the fact that 
the funds deposited in savings banks, the sums paid for indus- 
trial life insurance, and the amounts being invested in building 
associations are much greater at the present time than during 
the period of abnormally low prices, a period when prices were 
low because the masses had little with which to buy. The fact 
that in all these great institutions for the savings of the work- 
ingmen, the sums being deposited, whether as savings bank de- 
posits, industrial life insurance premiums, or building associa- 
tion funds, are much greater at the present time than in earlier 
years shows beyond question that the assertion that cost of liv- 
ing has advanced more than wages is false; for if this were true 
men so employed would be compelled to decrease the amount 
of their earnings, while in fact their savings bank deposits are 
to-day 50 per cent in excess of those of 1896, and the amount 
of industrial life insurance outstanding is more than double that 
of 1896. 

National Bank Statistics for 1904, Compared with 1903. 

The statement which follows, issued by the Comptroller of the 
Currency on July 2, 1904, shows conditions in national banks on 
June 9, 1904, compared with the corresponding date in 1903, and 
is especially interesting in its relation to the assertions with ref- 
erence to business conditions at the present time as compared with 
those of last year. It will be seen that in deposits, loans and 
discounts, circulation, and other features which are usually con- 
sidered as indications of business conditions the figures of 1904 
show an advance over those of the corresponding date of 1903. 



1903. 



Increase. 



Number of banks 

Loans 

United States bonds 

Other bonds, etc 

Specie 

Legal tenders 

Aggregate resources 

Capital stock. 

Surplus and undivided profits 

Circulation. , 

Individual deposits . . . 



4 939 

$3,415.045!751 

527,101,439 

538,671,472 

388,616,378 

163,592,829 

6,286,935,106 

743,506,048 

542,183,537 

359,261.109 

3,200,993,509 



5.331 

$3,595,013,467 
554,460.797 
576,898.062 
488,664,145 
169,729.173 

6,655,988,687 
767,378. 14B 
581,638.528 
399,583,838 

3,312,439,841 



$179,967,716 
27,359.358 
38,226,590 

100.047.767 
6,136.344 

369,053,581 
23,872.100 
39,454,991 
40,322,729 

111,446,332 



The upshot of all this is that it is peculiarly incumbent upon 
us in a time of such material well-being, both collectively as a na- 
tion and individually as citizens, to show, each on his own account, 
that we possess the qualites of prudence, self-knowledge, and self- 
restraint. In our Government we need above all things stability, 
fixity of economic policy. — President Rooseveft at Providence, R. 
I., Aug. 23, 1902. 



122 



PROSPERITY. 



COMPARISON OF CONDITIONS IN THE UNITED STATES 
WITH THOSE IN OTHER PARTS OF THE WORLD. 

The following tables, comparing conditions in the United 
States with those in other parts of the world, recently published 
in a leading financial journal of the United States, are sugges- 
tive and worthy of attention. 

Comparison of Development In the United States and United 
Kingdom. 

During the past twenty years the percentages of increase in 
a number of vital items in national prosperity are shown by the 
following table: 

Percentages of increase 20 years. 



Population 

National debt 

Exports 

Banking capital 

Deposits 

Bank clearings, London and New York 

Railway mileage 

Railway capital 

Railway receipts 

Railway net earnings 

Shipbuilding 

Merchant marine 

Sailing ships 

Steamers 

oa 1 production 

ig iron production 

Cotton consumption 

Wool consumption 



Great 


United 


Britain. 


States. 


18 


49 


2 


*36 


24 


87 


24 


53 


122 


198 


69 


63 


20 


67 


58 


70 


54 


109 


24 


67 


63 


1002 


42 


43 


*44 


*31 


'56 


580 


.38 


282 


11 


291 


14 


169 


30 


13 



♦Decrease. 

Condition In the United States Compared with That of the Re- 
mainder of the World. 

The following table shows the relation of the United States to 
the rest of the world: 



World. 



United 
States. 



Per Cent 
U. S. 



Area r square^miles . 

Population 

Internal commerce 

Wealth 

Banking power" » . . 

Per capita money in circulation 

Savings bank deposits 

National debt 

Government revenue 

Government expenditures 

Stock of gold 

Stock of silver 

Gold production 

Life insurance in force 

Railroads mileage . 

Railroads passengers . 

Railroads receipts. 

Merchant tonnage 

Area of coal fields square miles. 

Coal production tons. , 

Copper production do.... 

Zinc production do 

Pig iron production do 

Steel production do ... . 

Wheat crop bushels. 

Corn crop do... 

Barley crop do... 

Rye crop, bushels do . . . 

Cotton crop bales . 

Wool crop pounds . 

Number of telegraph messages 

Newspapers and periodicals 

Armed strength, land men : 

Peace footing * 

War looting 



51,238.000 

1,600,000,000 

22,000,000.000 

$400,000,000,000 

-$27,045,000,000 

$9.47 

$9,900,749,029 

$31,662,553,258 

$6,924,291,275 

$6,908,507,815 

5,607,600.000 

3.869.300,000 

327.000,000 

$24,039,486,922 

490,000 

3,746,000.000 

3,840,000,000 

34,482.303 

471.800 

787,000,000 

525.357 

502.104 

44,557.991 

36,479,783 

3,124,422,000 

3,070,920.000 

1.777,656,000 

1,678,714.000 

13,120.000 

2,667.686,000 

448.019.887 

58,794 

4,484,736 
34,347,684 



2,445 

$100,000 
$14,000, 

$2,935 
$969, 
$684 



1,314. 
673 
74 

$17,035 



584, 

1,487, 

6, 



18 
15 

670 
2.244 

670 
33 
10, 

287, 
91. 



616.484 
000.000 
000.000 
000,000 
000.000 
$30.38 
204,845 
457,241 
326.280 
038,903 
622,524 
300,000 
000,000 
752.753 
194,000 
,000.000 
044,814 
087.345 
194.000 
078.668 
272,685 
127 751 
003,448 
186.406 
063 000 
000 000 
063,008 
631000 
758.326 
450.000 
00,000 
21,000 



59,866 
8.347,684 



7.0 
5.0 
11.0 
25.0 
52.0 

30.0 
3.6 
9.8 
8.5 
23.4 
17.4 
22.6 
70.0 
39.5 
15.5 
38,7 
17.6 
40.9 
33.8 
51.0 
25.2 
40.9 
41.7 
21.4 
73.0 
37.7 
20.0 
82.0 
10.8 



1.3 
24.5 



PROSPERITY, 



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Commerce of the world since 1830. 
[Aggregate of imports and exports in millions of dollars.] 



Country. 


1830. 


1840. 


1850. 


1860. 


1870. 


1880. 


1890. 


1897. 


1903. 


United Kingdom 


422 

197 

220 

134 

72 

96 

33 

14 

144 

105 

168 

43 

48 

264 


547 

317 

249 

158 

105 

144 

48 

19 

216 

197 

230 

101 

96 

323 


811 
456 
336 
192 
139 
182 
53 
24 
293 
297 
336 
211 
144 
326 


1,800 
801 
624 
230 
225 
249 
120 
38 
413 
653 
451 
494 
249 
853 


2.625 

1,089 

1,017 

494 

398 

317 

197 

48 

653 

792 

648 

614 

408 

1,200 


3.350 

1.627 

1,411 

629 

513 

437 

240 

67 

1,137 

1,478 

768 

974 

518 

1,351 


3.552 

1,493 

1,761 

566 

441 

451 

283 

86 

1,488 

1,536 

797 

1,430 

629 

2,287 


3,389 

1,450 

1,996 

618 

609 

438 

301 

73 

1,915 

1,815 

826 

1,550 

440 

3.020 


4 056 


France 


a 1 702 


Germany 


2 698 


Russia 


1)799 


Austria-Hungary 




Italy 


a637 
a312 


Spain 




a97 
c 2.431 
d 2 418 


Holland and Belgium 

United States 


Spanish America 


c965 
c 2,292 

C664 
C 2 866 


India 










1,960 


2.750 


3,800 


7,200 


10,500 


14,500 


16.800 


18,500 


22 746 







a Preliminary figures for 1903, subject to correction, 
b Trade over the European frontier only, 
c 1902. d Fiscal year ending June 30. 



124 

Total ( \rjx tnlit ii)( 



PEOSPEBITY. 



and jxr capita expenditures of the principal 
countries of the world. 



Countries. 



Population. 


Year. 


4,794,000 


1901 


3,772,000 


1902-3 


788,000 


1902-3 


45.405,000 


1902-3 


6.694,000 


1901 


5,457,000 


1902 


1,078.000 


1902 


3X.1H5;>,000 


10D2 


58,549.000 


1901 


32.475,000 


1002-3 


5,347,000 


1901 


t>:stuxM> 


1902 


5,429.000 


1901-2 


18.61S.000 


1902 


5,199,000 


1901 


41,961,000 


1902-3 


80,372,000 


1902-3 



Per capita 
expenditures. 



Argentina 

Australasia: 
Common wealth 
New Zealand. .. 

Austria-Hungary. 

Belgium 

Canada 

Cuba 

France 

German Empire. . 

Italy 

Netherlands 

Paraguay 

Portugal. 

Spain 

Sweden 

United Kingdom. 

United States — 



Dollars. 
60.757,000 

142,148,000 

30,241,000 

647.969,000 

116,500,000 

50.759,000 

19,515,000 

695,250,000 

553,222,000 

356,492,000 

61,468,000 

11.007,000 

62,170.000 

.187,846,000 

49,593,000 

897.790,000 

640,323,000 



Dollars. 
12.69 

37.69 
38.38 
14.27 
17.40 

9.30 
12.40 
17.84 

9.44 
10.97 
11.49 
17.30 
11.45 
10.00 

9.53 
21.39 

7.97 



Wealth and debt of principal nations. 

[Eugene Parsons, in Gunton's Magazine, April, 1904.] 



United State' 
United Kingdom . 

France 

Germany ( Empire) 

Russia 

Austria-Hungary .. 

Italy 

Spain... 

Scandinavia 

Danubian States. . . 

Belgium 

Neth&rlands 

Portugal 

Greece 

Argentina 

Egypt 

Turkey 

Brazil 

Canada 

Roumania 

Mexico 

Uruguay 

Chile 



Wealth, (a) 



Dollars. 
100,000,000,000 
59,000,000,000 
48,000,000,000 
40,000,000,000 
32,000,000,000 
21.649,000,000 
15,168,000,000 
11,424,000,000 
6,220,800,000 
4,924,800,000 
4,742,400,000 
4,224,000,000 
1,978,800,000 
1,065,600,000 
Not stated. 
Not stated. 
Not stated. 
Not stated. 
Not stated. 
Not stated. 
Not stated. 
Not stated. 
Not stated. 



Debt. 



Dollars. 

925,000,000 

3,885,000.000 

5,856,000,000 

b 698,000.000 

3,333,000,000 

1,112,000.000 

2,560,000,000 

2,061,000,000 

Not stated. 

Not stated. 

504,000,000 

466,000,000 

670,000,600 

168,000,000 

509,000,000 

500,000,000 

726,000,000 

480,000,000 

265,000,000 

280,000,000 

168,000,000 

124.000,000 

113,000.000 



Per capita 
debt. 

Dollars. 
11 
92 
150 
60 
24 
25 
81 
110 



81 
86 

151 
69 

100 
53 
29 
33 
50 
47 
13 



a Figures for United States, 1903; United Kingdom, France, and 
Germany, 1901; remaining countries, 1895. 

b Exclusive of German States, $2,687,000,000. 

Estimate of manufactures of principal countries, 1900. 
[Wm. J. Clark, in Engineering Magazine, May, 1904.] 



United States $13,004,400,133 

United Kingdom 5,000,000,000 

Germany v 4,600,500.000 

France 3,450,000,000 

Austria-Hungary 2,000,000,000 

Russia 1.980,000.000 

Italy 1,700,000,000 

Canada * 800,000.000 

Belgium 750.000,000 



There Is no "worse enemy of the -wage-worker than the man 
-who condones mob violence in any shape, or who preaches class 
hatred; and surely the slightest acquaintance with our industrial 
history should teach even the most shortsighted that the times of 
most suffering for our people as a whole, the times when business 
is stagnant, and capital suffers from shrinkage and gets no return 
from its investments, are exactly the times of hardship and want 
and grim disaster among the poor. — President Roosevelt at Syra- 
N. Y., September 7, 1903. 



DEMOCRATIC ADVERSITY. 125 



BUSINESS AND INDUSTRIAL RECORD, 
1893=1896. 

[From Appleton's Annual Cyclopedia, 1893, 1894, and 1895.] 

July 18, 1893 : Denver, Colo. ; four banks close their doors 
and there are runs on other financial institutions. 

July 19 : More banks close their, doors. 

July 20.: Kansas ; fight between strikers and nonunion miners 
at Weir City. 

July 22 : Two bank failures in Milwaukee and runs on banks 
in many other places. 

July 24 : More bank failures in the West. 

July 2G : New York ; two stock exchange firms fail. 

July 27 : Ten banks suspend, most of them Northwestern. 
Other business failures reported. 

July 28: More failures and suspensions, including nine banks 
in the West and one in Kentucky. 

August 1 : Collapse of the Chicago provision deal. Many 
failures of commission houses. Great excitement in the board 
of trade. 

August 8: The Chemical Bank, one of the strongest in the 
country, is unable to fill its weekly orders for small currency. 

August : Madison Square Bank suspends. 

August 17: Much excitement on east side New York among 
Hebrew laborers. Police called out. 

August 22 : Encounter between anarchists and socialists avert- 
ed by police in New York. 

August 23 : Meeting of anarchists broken up by police. 

August 30: Kansas coal miners strike ended with nothing 
gained. 

January 15, 1894: Secretary of the Treasury Carlisle an- 
nounces his intention to issue bonds. 

January 17: The Secretary of the Treasury offers a $50,- 
000,000 loan for public subscription, according to his announced 
intentions. 

January 24: Strike in Ohio of 10,000 miners. 

January 27 : A mob of foreign miners destroy property at 
Brantyille, Pa., and elsewhere. 

February 16 : Many New York silk factories close on account 
of strike. 

February 18 : In Ohio all the mines of the Massillon district 
closed by strike. 

February 20 : In Boston a riotous assemblage of unemployed 
workmen dispersed by police. 

March 2 : Six* thousand miners in Jackson County, Ohio, out 
of employment. 

Paterson, N. J. : General strike among the silk weavers. 

March 3 : In West Virginia striking miners burn the railroad 
bridge and commit other lawless acts. 

March 13 : At Paterson, N. J., riotous proceeding on the part 
of the striking silk weavers. 

March 17: In Colorado Governor Waite orders State troops 
to Cripple Creek to suppress mining troubles. 

March 20: In Boston a large body of unemployed working- 
men march to the State House and demand employment. 

March 24 : A movement inaugurated in various parts of the 
Northern States, known as the Army of the Commonwealth, 
Coxeyites, etc., proposing marching .to Washington and demand- 
ing help at the hands of Congress. 

March 31 : Coxeyites are a source of terror to certain Western 
towns upon which they quarter themselves. 

April 1: In South Carolina a large force of State militia is 
dispatched to the scene of the whisky war in Darlington and 
Florence. 

In Ohio a mob of strikers at East Liverpool becomes riotous 
and several" persons are injured. 

April 2: In Chicago 5,000 plumbers, painters, etc., go on 
a strike. 



126 l»l-.MOi KM U ADYKKSl IV. 

At Connelisviii(\ Pa., 5,000 coke workers strike. 

April .".: in South Carolina the governor assumes control of 
i he police and declares martial law In all the cities of the State. 

April 1 : In Pennsylvania r> men killed and 1 wounded in 
coke riots. 

April 13: General strike for higher wages on Great Northern 

Railway. 

In Alabama: The general council of United Mine Workers 
orders a strike affecting 8,000 men. 

April 1G: Strike on the Great Northern spreads to the 
Northern Pacific. 

April 20: In Omaha a *mob seizes a train of box cars and 
attempts to deport Kelly's industrial army, but the army refuses 
to go. 

April 21 : About 150,000 miners stop work in sympathy with 
the coke strikers of Pennsylvania. 

April 28: Arrival of a division of the Coxey army at Wash- 
ington. 

A division of the Coxeyites arrested at Mount Sterling for 
holding up a railway train. 

United States troops ordered to assist the civil authorities in 
the far West. 

On the Great Northern Railroad system the Knights of Labor 
are called out on strike. 

April 29: Kelly's army, 1,200 strong, at Des Moines. 

April 30: Strike of 2,000 painters in Chicago. 

May 1 : Attempted demonstrations of Coxey's army on the 
steps of the Capitol. Leaders arrested. 

May 2: In Ohio a mob of Italians and Poles attack the iron 
mills, but the. riot is subdued by the police. 

May 4 : Further bloodshed in the coke regions of Pennsyl- 
vania ; killed and wounded on both sides. 

May 9 : Kelly's army sails from Des Moines on flatboats. 

May 10 : Several deputy marshals and citizens shot in a 
conflict with Coxeyites. 

May 11: Two thousand Pullman car employees strike at Chi- 
cago for last year's wages. 

May 12 : The captured Coxey army is removed to Leaven- 
worth, where there is a strong garrison of regulars. 

May 13 : Arrest of a commonweal army by United States mar- 
shal at Greenriver, Wyoming. 

May 19: Several hundred employees of the Government Print- 
ing office dismissed. 

May 19 : Considerable detachments of commonweal armies 
are suffering from cold and hunger in the neighborhood of Cin- 
cinnati. 

May 25 : In Ohio more conflict between striking miners and 
deputy sheriffs. 

May 2G: In Pennsylvania the governor «oes to the coke 
regions to use his personal influence toward allaying the dis- 
turbances. 

In Colorado the governor orders out the militia to suppress 
riotous miners at Cripple Creek. 

May 27: In Illinois the governor orders troops to Minonk, 
where a mob has taken possession of a railway train. 

May 30: In Pennsylvania the governor issues a warning to 
coke rioters. 

In Ohio: Governor McKinley orders out the militia to pre- 
vent interference with coal trains. 

June 1: At St. Louis 1,000 carpenters strike. 

General Kelly and his industrial army leave the city. 

June 4 : At Washington destitution among the commonwealers. 

June 5: Militia ordered out to quell striking miners. 

In Idaho a number of commonwealers sentenced to imprison- 
ment for train stealing. 

June 7 : In Ohio trains move under the protection of the 
militia. 

Kelly and his commonwealers abandon their boats at Cairo 
and resume their march on Washington. 

June 9 : Nineteen commonwealers sentenced to jail for var- 
ious offenses. 



DEMOCRATIC ADVERSITY. 127 

June 10: Coal strikers in Pennsylvania killed and wounded 
in an encounter with sheriffs at Lamont. State troops on both 
sides of the Ohio River harassed by strikers. 

June 11 : Continued destruction of railroad property in Ohio 
and Alabama. 

June 17 : The Indiana miners continue to strike. Striking 
miners in Ohio, Pennsylvania, and West Virginia decide to re- 
turn to work. 

Twenty-three commonwealers in Illinois sent to jail for train 
stealing. 

June 18: Wisconsin; General Cantwell's industrial army cap- 
tures a train and rides 200 miles. 

At Leavenworth 121 comm'onwealers sentenced and sent to 
various county jails. 

June 20: On the Gogebic range, Mich., 2,000 miners go on 
a strike. 

June 21: Governor of Pennsylvania orders out troops to sup- 
press disorders in Jefferson County. 

In Illinois : Twenty-five strikers indicted by grand jury. 

June 25: In St. Louis and Ludlow, Ky., about 500 employees 
strike work from Pullman Car Company. ~- 

June 20 : Boycott against Pullman cars goes into effect. 

Industrial army disturbances are thus far reported in 14 
States and 2 Territories. 

June 28: The railway strike spreads so as to include nearly 
all the great railroads between the Mississippi and the Pacific. 

June 30: The month closes with a most threatening state of 
affairs in the West and the Northwest ; violence continues to in- 
crease at all the strike centers. 

July 1 : The Federal Government takes active steps to pro- 
tect mails in transit through the region of disturbance. 

July 2 : United States courts at Chicago issue a general order 
against strikers, and United States troops are called out. 

July 3 : Strikers block the operations of all railways from 
Chicago westward. Regulars and State troops in strong force 
ordered to the scene of action. 

July 5: Great destruction of property by rioters at Chicago. 

Encounters with militia at Sioux City and Asbury Park. 

July 6 : Many cars burned by rioters in Chicago. Governor 
Altgeld protests against the intervention of United States troops. 

July 7 : State troops fire on mob at Chicago. 

United States regulars assume control of the Northern Pacific m 
and Union Pacific railroads. 

July 8 : Regulars disperse mob at Hammond, Ind. ; 1 killed 
and 4 wounded. 

July 10: Debs and other labor leaders arrested at Chicago, 
but released on bail. General call upon all Knights of Labor to 
strike. Regulars start for Sacramento, Cal., which has been for 
several days under mob rule. 

July 11 : About 15,000 workingmen strike at Chicago. 

Strikers wreck a train at Sacramento, Cal., killing the en- 
gineer and 3 soldiers and injuring others. 

July 13 : Regulars fire upon a mob at Sacramento. A detach- 
ment of Kelly's industrial army captures a train in Ohio. 

July 15 : Strikers wreck a freight train at Indianapolis. 

July 17 : Debs and other leaders sent to jail by Federal court. 

August 10 : Two companies of State militia ordered to South 
Omaha to restrain packing-house strikers. 

August 11: An industrial army at Rosslyn, Va., dispersed by 
State troops. 

August 13 : Adoption of the amended Wilson tariff bill by both 
houses of Congress. 

August 23: Lockout of 25,000 mill operatives at Fall River, 



September 15 : Strike of 38,000 mill operatives at Fall River. 

September 20: General strike of garment workers in Boston. 

September 24: Strike of 3,000 shirt makers in New York. 

October 23: Residents of Indian Territory ask the Govern- 
ment to detail troops for the protection of private property. 

Resumption of strike among the textile workers at Fall River. 

November 13 : Secretary of the Treasury Carlisle issues a 
call for another loan of $50,000,000 on five per cent ten-year bonds. 



1 28 



IMPORTS AND EXPORTS OF T 



'EI) STATES. 



i in ports and e&ports <>f the United 8tttU 



i 'iM-ul Years. 


Imports. 


Exports. 


Excess of 
imports. 


Excess of 
exports. 


1790 


$23,000,000 
0I.S6S.7S8 

85,400,000 
74,450,000 
72,169,172 
90,189,310 
78,093,511 
71,332.938 
81.020,083 
67.088,915 
62.720,956 
95.885,179 
95,121.762 
101,047,943 
108.609,700 
136.764.295 
176,579,154 
130,472,803 
95,970,288 
156,496,956 
98,258.706 
122,957,544 
96,075.071 
42,433,464 
102,604,606 
113,184,322 
117,914,065 
122,424,349 
148,638,644 
141,206,199 
173,509,526 
210,771,429 
207,440,398 
263,777,265 
297,803,794 
257,808,708 
310,432,310 
348,428,342 
263,338,654 
331,333,341 
353,616,119 
289,310,542 
189,356,677 
243,335,815 
316,447,283 
238,745,580 
434,812,066 
395,761,096 
357,436,440 
417,506,379 
435,958,408 
520,223,684 
626,595,077 
642,136,210 
567,406,342 
533,005,436 
460,741,190 
451,323,126 
437,051,532 
445,777,775 
667,954,746 
642,664,628 
724,639,574 
723,180,914 
667,697,693 
577,527,329 
635,436,136 
692,319,768 
723,957,114 
745.131,652 
789,310,409 
844,916,196 
827,402,462 
866,400,922 
654,994,622 
731,969,965 
779,724,674 
764,730,412 
616,049,654 
697,148,489 
849,941,184 
823,172.165 
903.320,948 
1.025,719,237 


$20,205,156 

70,971,780 
66,757,970 
69.691,609 
68.972.10f) 
90,738.333 
78,890,789 
74,309.917 
64,021,210 
67*,434,651 
71,670,735 
72,295,652 
81,520,603 
87,528,732 
102,260,215 
115,215,802 
124,338.701 
111.443,127 
104.978,570 
112.251,673 
123,668,932 
111,817,471 
99,877,995 
82,825,689 
105,745,832 
106,040,111 
109,583,248 
156,741,598 
138,190,515 
140,351,172 
144,375,726 
188,915,259 
166,984,231 
203,489,282 
237,043,764 
218,909,503 
281,219,423 
293,823,760 
272,011,274 
292,902,051 
333,576,057 
219,553,833 
190,670,501 
203,964,447 
158,837,988 
166,029,303 
348,859,522 
294,506,141 
281,952,899 
286.117,697 
392,771,768 
442,820,178 
444,177,586 
522,479,922 
586,283,040 
513,442,711 
540,384,671 
602,475,220 
694,865,766 
710,439,441 
835,638,658 
902,377,346 
750,542,257 
823,839,402 
740,513,609 
742,189,755 
679,524.830 
716,183,211 
695,954,507 
742,401,375 
857,828,684 
884,480,810 
1,030,278,148 
847,665,194 
892,140,572 
807,538,165 
882,606,938 
1 ,050,993,556 
1,231,482,330 
1,227,023,302 
1,394,483,082 
1,487,764,991 
1,381,719,401 
1,420,141,679 


$2,794,844 

20,280.988 

18,642,030 

4,758.331 

3.197,067 

"'5,262.722' 




1800 




1810 




1820 




1 V 1 




I8H 


$549,023 


l bm 




1817 


2,977,009 


i no.*:. '.'..'. 


16,998.873 


"315,736 


ino 


' 23.589,527' 
13,601.159 
13,519,211 
6,349,485 
21,548,493 
52,240,450 
19,029,676 


8,949,779 


1831 




1832 








1834 




1835 




1836 




1 837 




1838 


9,008,282 


1839 


44,245,283 




1840 


25.410,226 


1841 


11,140,073 




1842 


3,802,924 


1843 




40,392,225 


1844 




3,141,226 


1845 


7,144,211 
8,330,817 




1 846 




1847 


34,317.249 




10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,760,030 
38,899,205 
29,212,887 
54,604,582 




1849 




1850 




1851 




1852 




1853 




1854 




1855 




1856 




1857 




1858 


8,672,620 


1859 


38,431, 2'jO 
20,040,062 
69,756,709 




I860 




1861 




1862 


1,313,824 


1863 


39,371,368 
157,609,295 
72,716,277 
85,952,544 
101,254,955 
75,483,541 
131,388,682 
43,186,640 
77,403,506 
182,417,491 
119,656,288 




] 864 




1865 




1866 




1867 




1868 




J 869 




1870 




1871 




1872 




1873 




1874 


18,876,698 


1875 


19,562,725 




1876 


79,643,481 


1877 




151,152,094 


1878 




257,814,234 


1879 




264,661,666 


1880 




167,683,912 


1881 




259 712,718 


1882 




25,902 683 


1883 




100 658 488 


1884 >. 




72 815 916 


1885 




164,662,426 


1886 




44 088,694 


1887 




23,863,443 


1888 


28,002,607 
2,730,277 




1889 




1890 


68 518 275 






39,564,614 


1892... 




202,875,686 




18,735,728 


1894 


237,145,950 


1895 : 




75,568,200 


1896 


102,882,264 






286,263,144 


1898 




615,432,676 






529,874,813 


1900.. 




544,541,898 


1901.. 




664,592,826 


1902 




478,398,453 


1903 




394 422 442 








•Total 


$34,279,263,510| 


$37,863,335,440 




$*3,584,071,93O 









* The totals include the figures of all omitted years and are thus the totals 
of all years from 1789 to 1903. 



IMPORTS BY GROUPS. 



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131 



132 



EXPORTS TO GRAND DIVISIONS. 





I 

E 




1850 

1855 

1860 

1865 

1875 

1880 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1901 

1902 

1903 


2 
o 

& 

4) 

S3 
S3 

O 

CO 

a 

o 

°2 
V 
-3 

•d 

a 

C3 

bi 

.O 

cv> 
o 
u 
<u 

o 

o 


1 

s 

o 

!- 

CO 

0) 

r3 

-4-> 

a> 

*-> 

'3 
P 

a) 
a 

+3 

o 

-J 

a 

CO 

*3 

5 
A 
| 


< 


0,o 


Dollars. 

682.151 

1,849.642 

3.798.518 

3,166,431 

C 9.860,058 

c 10,219.095 

d 3.789,420 

d 4,382,223 

d 4.836,842 

c 4.875.838 

c 4.565.363 

c 5,505,275 

3.321.477 

4.207.146 

5.318.052 

9,857.032 

3,479.338 

5.709.169 

11.172.979 

9,529,713 

7.193,639 

10.436,060 

11.218.437 

8.953,461 

13.447,615 

12,581.651 




OO ' «-* ' ** ' ■wco©ico'(»c>icocowcoco^eoeo-<«*eo-«i*-H'-<c4 


C 
OS 
V 

a 
O 


£o 


Dollars. 

1,401,340 

3.575.574 

3,495.226 

3,572.343 

1.423,212 

4.982.781 

d 14,130.604 

d 19.470,646 

d 13,665,067 

22.948.024 

26,472,885 

29,604,059 

28,356,568 

25.621.134 

23,133,062 

25.997,378 

21,457.923 

17,450.926 

24,614,668 

24,400,439 

26,859.230 

26,997,877 

34,611,108 

11,395.195 

14,166,461 

21,043,527 


efl 


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h* 3 *"' *"■ ** '" , *"' "■■ *"' rt •~ l —' '"' ^ rt 
ep<n ♦ 


Dollars. 

10,315,486 
18,288,328 
6.201,603 
11.248.583 
31,413,378 
45,220,249 
67,008,793 
52,200.475 
68,088,821 
e 63,212,870 
61.691.675 
63.600,391 
67.506,833 
72,272.222 
80.138,251 
87,624,446 
66,186,397 
77,626.364 
89,592,318 
87.294,597 
92,594.593 
107.091,214 
139,842.330 
117,677,611 
129,682,651 
147,702,174 


cS 
O 

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s 

« 

S 


01 


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Dollars. 

16,647,637 
27.894.198 
v 35,992,719 
* 22,930.809 
43,596,045 
74,247,631 
82,126,922 
65.289,956 
65,875,425 
79,764,191 
84,356.398 
92,135,052 
90,006,144 
118.736,668 
150,727,759 
102,207,815 
100,147,107 
112,167,120 
108,828,462 
107,389,405 
92.091,694 
86,587,893 
93,666,774 
110,367.342 
119.785,756 
107.428,323 


4 

o 

u 

I 

< 

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C 

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OOco^oiQt^eoo3Qos"o6oJOQOOSrt«"krfodcdMT^co"u5^cdo6 

p4° 


Dollars. 

24,136,879 
44,781,394 
75,082.583 
83,912,382 
126,544,611 
132.035,363 
130,077.225 
117.450,701 
125,431,516 
130,790,843 
139,818,918 
150,865,817 
148.368.706 
163,226.079 
174,054.181 
183.732.712 
166.962,559 
133.915,682 
126,877.126 
105.924,053 
91.376,807 
112,150,911 
130,035,221 
145,158,104 
151.076,524 
189.736.475 


i 


E 

3 


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Dollars. 

124,954.302 
165.079,384 
216.831,353 
109.603,619 
249.540,283 
287,201,034 
370.821,782 
318,733,328 
357,538,465 
390,728.002 
407,051.875 
403,421,058 
449,987.266 
459,305,372 
391,628,469 
458,450,093 
295,077.865 
383,645,813 
418.639.121 
430.192,205 
305,933,691 
353,884.534 
440,567.314 
429.620.452 
475.161.941 
547.226.887 




t 
as 




1850 

1855 

1860 

1865 

1870b 

1875 

1880 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

* 



PER CAPITA COMMERCE AND CONSUMPTION. 



133 



Merchandise imported into, exported from, and retained foi con- 
sumption in the United States, 1871 to 1903. 
I From the Statistical Abstract.] 





Imports, 
per capita. 


ExportB of domestic 
merchandise. 


Retained for consumption, 
per capita. 




Merchandise im- 
ported for con- 
sumption, per 
capita. 


-a 

I| 

3 P. 

O 53 
►.© 


4> 

P. . 

on *» 

2 * 

Co 
M 

H 


Exports of agri- 
cultural prod- 
ucts, per cent 
of total exports. 


Exports of prod- 
ucts of manufac- 
ture, per cent of 
total exports. 


s 
o 

o 
o 

► 

33 


S3 
V 
A 

P 

M 
g 


Raw wool. 


Year. 


if 


P 
"8 
1 


1871 


$12.65 
13 80 
l.\91 
13.26 
11.97 
10 29 
9.49 
9.21 
899 
12.51 
12 68 
13.64 
13.05 
12 16 
10 82 
10.89 
1165 
1188 
12.10 

12 35 

13 38 
12 50 
12 73 

9.41 
10.61 
10 81 
1102 
8.05 
9.22 
10 88 
10 58 
11.89 
12 54 


S5 12 
5.23 
4.44 
3.75 
3.51 
3.22 
2.77 
2.67 
2.73 
3.64 
8.78 
4.12 
3 92 
3.47 
8 17 
3.30 
3.65 
3.60 
8.60 
8.62 
8 40 
2.68 
3.00 
1.92 

2 17 
2.23 
2.41 
1.99 
2.72 

3 01 
3 06 
3.17 
8.49 


810.83 

10 65 
12 12 
13.81 

11 86 

11 64 

12 72 
14.30 
14 29 
16.43 
17.23 
13.97 
14 98 
13.20 
12.94 
1160 
11.98 
11.40 
1192 
13.60 

13 63 
15.61 
12.98 
12.85 
11.51 
12.29 

14 42 
16 59. 
16 29 
17.96 
1881 
17.16 
17.32 


P. cent. 
70.74 
74.18 

7610 
79.37 
76.95 
71.67 

72 63 
77.07 
78.12 
83.25 
82 63 
75.31 
77.00 

73 98 
72.96 
72.82 
74.40 
73.23 
72.87 
74.51 
73 69 
78.69 
74.05 
72.28 
69.73 
66.02 
66.23 
70 54 
65.19 
60.98 
64.62 
62.83 
62.78 


P. cent. 


Lbs. 

14 10 
11.10 
1519 
13.60 
11.90 
14.77 
14.03 
13.71 
15.90 
18 94 
19.64 
16.15 
20.80 
16.80 
15.16 
19.69 
16.84 
19.59 
17.22 
18.50 
22.38 
24.58 
17.84 
16.45 
22.75 
18.67 
18.77 
25 76 
27.87 
22 57 
25.94 
25.65 
24.64 


Bush. 
4.69 
4.79 
4.81 
4.46 
5.38 
489 
501 
5.72 
5.58 

5 35 

6 09 
4.98 
6.64 
5.64 
6.77 
457 
5.17 
5.62 

5 84 
6.09 
4.59 
5.94 
4.89 
3.44 
459 
4.85 
8.95 
4 29 

6 09 
4 74 
3 95 
6 50 
5.81 


Lbs. 
5.73 
6.75 
5 67 

4.81 
5.28 
5.21 
6.16 
5.28 
5.03 
6.11 

5 66 

6 36 
6.62 

6 85 
6.69 
7.39 
6.68 
6.81 
6.33 
6.03 
6.44 
6.75 

7 10 
5.13 
7.89 
6 98 
8.40 
5 44 
4.53 
5.72 
5.18 
6.07 
5.74 


P. cent. 
294 


1872 




45 3 


1873 




33.2 


1874 




17 5 


1875 


16 57 
17.08 
21.61 

17 79 
16 72 
12.48 
12 92 

18 38 
16.69 
18.81 
20.25 
20.50 
19.45 

19 05 
18.99 
17.87 
19 37 
15.61 
19.02 
81.14 
23.14 
26.48 
26.87 
24.02 
28.21 
31.65 
28.14 
29.77 
29.28 


22.1 


1876 


18.3 


1877 


16 8 


1878 


16.9 


1879 


14 2 


1880 


34 9 


1881 

1882 


17.8 
19 


1883 

1884 


18.7 
20.6 


1885* 


18 


1886* 


28.9 


1887*. 

18*8* 

1889 

189 t 


27.4 
28.9 
318 
27.0 


1891 


30.8 


1892 

1893f 


33,1 

35.7 


189 4 1 


14.2 


1895t 


40.0 


1896f 


46.9 


1897f 


57.8 


1898 


32 8 


1899 


19.2 


1900 


34 4 


1901 ... 

1902 


24.9 
84.1 


1903 


37.8 







* Democratic President, but Republican control of on* branch of Congress. 
t Democratic President and low tariff. 

Total Values of Imports Entered for Consumption and Duties Col- 
lected Thereon from 1876 to 1903. 







[Frorr 


Statistical Abstract.] 














Average ad valo- 






Year 
ending 


Total. 


Per 


Amounts of 

duty 


rem rates of 
duty on- 


Duty 
collect- 


Imports 
per 








ed per 
capita. 


June 30— 




of free. 


collected. 


Dutiable 


Free and 
dutiable 


capita. 




Dollars. 




Dollars. 


Per cent 


Per cent 


Dollars. 


Dollars. 


1877 ...... 


439,829,389 


32.02 


128,428,343 


42.89 


26.68 


2.77 


9.49 


1878 


438,422,468 


32.24 


127,195,159 


42.75 


27.13 


2.67 


9.21 


1879 


439,292.374 


32.45 


133,395,436 


44.87 


28.97 


2.73 


8.99 


1880 


627,555,271 


33.15 


182,747.654 


43.48 


29.07 


3.64 


12.51 


1881...... 


650,618,999 


31.13 


193,800.880 


43.20 


29.75 


3.78 


12.68 


1882 


716,213,948 


29.42 


216,138,916 


42.66 


30.11 


4.12 


13.46 


1883 


700,829,673 


29.52 


210.637,293 


42.45 


29.92 


3.92 


13.05 


1884 


667.575,389 


31.15 


190.282,836 


41.61 


28.44 


3.47 


12.16 


1885 


579,580,054 


33.28 


178,151.601 


45.86 


30.59 


3.17 


10.32 


1886 ...... 


625,308,814 


33.83 


189,410,448 


45.55 


30.13 


3.30 


10.89 


1887 


683,418,981 


34.11 


214,222.310 


47.10 


31.02 


3.67 


11.65 


1888 


712.248,626 


34.27 


216,042,256 


45.63 


29.99 


3.60 


11.88 


1889 


741.431,398 


34.61 


220,576,989 


45.13 


29.50 


3.62 


12.10 


1890 


773,674,812 


34.39 


226,540.037 


44.41 


29.12 


3.62 


12.35 


1891 


854.519.577 


45.41 


216,885,701 


46.28 


25.25 


3.40 


13.38 


1892 


813,601.345 


56.30 


174,124,270 


48.71 


21.26 


2.68 


12.50 


1893 


844.454.583 


52.60 


199,143,678 


49.58 


23.49 


3.00 


12.73 


1894 


636,614,420 


59.53 


129,558,892 


50.06 


20.25 


1.92 


9.41 


1895 


731.162,090 


51.55 


149,450,608 


41.75 


20.23 


2.17 


10.46 


1896 


759,694.084 


48.56 


157,013,506 


39.95 


20.67 


2.23 


10.81 


1897 


789.251,030 


48.39 


172,760,361 


42.17 


21.89 


2.41 


11.02 


1898 


587,153.700 


49.65 


145.438.385 


48.80 


24.77 


1.99 


8.05 


1899 


685,441,892 


43.72 


202.072,050 


52.07 


29.48 


2.72 


9.22 


1900 


830.519,252 


44.16 


229,360,771 


49.24 


27.62 


3.01 


10.88 


1901 


807.763,301 


41.98 


233.556.110 


49.64 


28.91 


3.06 


10.58 


1902 


899,793.754 


44.01 


251,453,155 


49.78 


27.95 


3.17 


11.39 


1903 


1,007,960,110 


43.38 


a 280,762,197 


49.03 


27.85 


3.49 


12.54 



131 KK( ! NTS \\i> I \l'i:\i)Ill kks OK THE UNITED STATES. 



Receipts and expenditure* of the r>iitc<i states. 

! PtOXB St;itis1i<>;il Abstract.] 



Total *$17,096,217,866 



Net ordinary 

receipts. 



$4,409,951 
10.848,740 
0.884,214 
17,810,670 
I0t881,2ia 
21.840,868 
25,260,484 
22,966,364 
24,763,089 
21,827,027 
24.844,117 

31,867.451 
33,948,426 
21,791,036 

35,430,087 
50,826,796 
24.954.153 

26,302.562 

31.482,750 

19,480,115 

16,860,160 

19,976,197 

8,231,001 

29,320,708 

29,970,106 

29,699,968 

26,467,403 

35,698,699 

30,721,078 

43,592.889 

52,555.039 

49.846.816 

61,587.032 

73,800,341 

65.350,575 

74,056,699 

68,965,313 

46,665,366 

52,777,108 

56,054,600 

41,476,299 

51,919,261 

112,094,946 

243,412,971 

322,031.158 

519,949,564 

462.846,680 

376,434,454 

357,188,256 

395,959,834 

374,431,105 

364,694,230 

322.177,674 

299,941,091 

284.020.771 

290.066,585 

281.000.642 

257,446.776 

272,322,137 

333,526,501 

360,782,293 

403.525,250 

398,287,582 

318,519,870 

323.690,706 

336,439,727 

371.403.278 

379,2667075 

387,050.059 

403,080.983 

392.612,447 

354,937,784 

385,819.629 

297,722,019 

313,390,075 

326,976.200 

347,721,705 

405,321,336 

515.960,620 

567.240.851 

587,685,337 

562,478.233 

558.887.526 



Net ordinary 
expenditures. 



$3,097,452 
10.813,971 
8.474,753 

18.285,535 

20,273.703 

15.&57.217 

17.037,859 

16.139.167 

16,394,842 

15.184,054 

15.142.108 

15.237,817 

17,288,950 

23,017,552 

18.627.570 

17,572.813 

30,868,164 

37.243,214 

33,864,715 

26,896,783 

24,314,518 

26,481,818 

25,134.886 

11,780,093 

22,483.560 

22,935.828 

27,261,183 

54,920.784 

47,618,221 

43,499,078 

40,948,383 

47,751,478 

44,390,252 

47,743,989 

55,038,455 

58,630,663 

68,726,350 

67,634,409 

73,982,493 

68,993,600 

63,875,876 

66,650,213 

469,570,242 

718,734,276 

864,969,101 

1,295,099.290 

519,022,356 

346,729,326 

370,339,134 

321,190,598 

293,657,005 

283,160,394 

270,559.696 

285.239.325 

301.238,800 

274,623,393 

265,101,085 

241,334,475 

236,964,327 

266,947,884 

264,847,637 

259,651,639 

257,981,440 

265,408,138 

244.126,244 

260,226.931 

242,483.139 

267,932.180 

259.653,959 

281,996,616 

297,736.487 

355,372.685 

345,023.331 

383.477,954 

367,525,280 

356,195,298 

352,179,446 

365.774.160 

443.368.583 

605,072.180 

487,713,791 

509,967,353 

471,190,858 

506,272,073 



Excess of 
receipts. 



$1,312,498 

34.778 

909,461 



5,983.641 
8.222,575 
6.827.197 
8.369.087 
9,643,573 
9.702,009 
13,289,004 
14,578,501 
10,930,874 
3,164,366 
17,857,274 
19,958,632 



Excess of 
expenditures. 



4,585,967 



6,837,148 
7,034,278 
2,438,785 



2,644,506 
4,803.561 
5.456,564 
13,843.043 
18,761,886 
6,719,912 
5,330,349 
1,330,904 



927,208 
116,117,354- 
6,095,320 
35,997,658 
102,302,829 
91,270,711 
94,134.534 
36,938,349 



9,397,378 

24,965,500 

39,666,167 

20,482,449 

5,374,253 

68,678.864 

101,130.654 

145,543,810 

132,879,444 

104,393,626 

63,463,775 

93,956,588 

103.471,098 

119,612,116 

105,053,443 

105,344,496 

37,239,762 

9,914,453 

2,341,675 



79,527,060 
77,717,984 
91,287.375 
52,615,453 



$17,864,398,913 



$768,181,047 



Note. — Does not include receipts from loans or payments on 
principal of public debt. Fiscal year ended September 30 prior to 
1843; since that date ended June 30. Footings include the figures 
of omitted years prior to 1810, and are totals of all years from 
1790 to 1903, 



ANALYSIS OF THE PRINCIPAL OF THE PUBLIC DEBT. 



135 



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136 a<;kiculturai, PROSPERITY. 



AGRICULTURAL PROSPERITY UNDER REPUBLICAN AD- 
MINISTRATION, DEPRESSION UNDER 
DEHOCRATIC RULE. 

The farmers of the country create most of its wealth and send 
abroad 63 per cent, of our exports in addition to producing much 
of the material from which manufactures are made that are used 
at home and abroad. The Republican administration lias greatly 
developed agricultural investigation in the last seven years, until 
scientific inquiry is being made in all our States and Territories 
and in the isles of the sea under our flag, to the end we may 
produce the necessities of life for ourselves and tliose for whom 
we are responsible. The power of the man and the acre to produce 
is being increased all over the land; new grains, grasses, legumes, 
fruits, fibers and vegetables are being imported from foreign coun- 
tries into continental United States and into our island posses- 
sions in order to diversify crops and bring into productiveness 
sections of our country that have heretofore been barren. The 
weather, the animals, the plants, the forests, the soils, our roads, 
our foods, our insect friends and enemies are being studied from 
the farmer's standpoint by 2,000 scientists in the Department of 
Agriculture, which has grown in helpfulness every day since 
1896. 

The farm value of the wheat, corn, and oat crops in 1903 was 
nearly double that of 1896, the last year of the Cleveland adminis- 
tration. This is rather a startling statement, but it is borne out by 
the Statistical Abstract, published by the Government and made up 
from the official figures which have no partisan bias. 

For the year 1896 the farm value of corn was $491,006,967, that 
of the wheat crop $310,602,539, and that of the oat crop $132,485.- 
033, the total farm value of the three crops for that year being 
$934,094,538. 

The farm value of the corn crop in 1900 was $751,220,034, that 
of the wheat crop $323,515,177, and that of the oat crop $208,- 
669,233, making the total farm value of the three crops in 1900 
$1,283,404,444, or $349,309,905 more than the farm value of the 
same crops in 1896. In 1903 the farm value of the corn crop was 
$952,868,801, that of the wheat crop $443,024,826 r and that of the 
oat crop $267,661,665, a total farm value of the three crops in 
1903 of $1,663,555,292, or $380,150,848 more than the farm value 
of the same crops in 1900, and $729,460,753 more than their farm 
value in 1896. 

Increase in Farm Values. 

I 

This increase of farm value under Republican administrations 
is not accidental. It is a matter of history that rural prosper- 
ity and Republican rule are coincident, it is equally a matter of 
record that agricultural depression, mortgage foreclosures, and 
low prices for farm products accompany Democratic administra- 
tion of national affairs. The prosperity of the farmer depends 
upon the prosperity of all other industrial elements of our popu- 
lation. When the industrial classes are employed at American 
wages their consumption of farm products is on a liberal scale. 
and they are able and willing to pay good prices for the necessities 
and luxuries of life. Under such conditions there is a good market 
for all the farmer has to sell. When the reverse is true and the 
workmen are idle or working scant time at cut wages they are 
forced to practice pinching economy and the farmer necessarily 
loses part of his market. The American farmer is prosperous 
when well paid workmen are carrying well filled dinner pails, 
a conditions which has accompanied Republican supremacy since 
the birth of the party. Idle men, tramps, and soup houses, fa- 
miliar sights under Democratic rule, furnish but poor markets for 
farm produce. 

The . records for the last four administrations, which alter- 
nated between the Republican and Democratic parties, show that 
the farmers received more for their crops under Republican ad- 
ministrations than under Democratic administrations. 



AGRICULTURAL PROSPERITY. 137 

The farm -value of the corn crops for the four years of Cleve- 
land's first administration, from 1885 to 1889, aggregated $2,509,- 
053,980. 

In the four years of the Harrison administration which fol- 
lowed, the farm value of the corn crop aggregated $2,830,938,138, 
an increase in value of more than $250,000,000 over that of this 
crop during the Cleveland administration. 

For the next four years, while Mr. Cleveland was President 
and Democratic policies were in force, the farm value of the corn 
crop aggregated $2,182,337,290, a decrease of $750,000,000 from 
that during the Harrison administration. 

Then came the Republican administration of William Mc- 
Kinley, and for the first four years of that administration the 
farm value of the corn crop aggregated $2,433,526,524, or an in- 
crease of $250,000,000 over that of the last Democratic adminis- 
tration, while in the succeeding three years, 1901-03, it was $2,- 
891,441,918, or $457,915,394 more in three years than in the pre- 
ceding four years. 

Wheat and Oats. 

The same law of fluctuation according to political policies in 
administration held good as to wheat and oats. The farm value 
of the wheat crop for the four years of the first Cleveland ad- 
ministration aggregated $1,285,407,400, and for the next four 
years, including the Harrison administration, the farm value 
of the wheat 'Crop aggregated $1,512,859,980, an increase of $227,- 
000,000 in the farm value of wheat -over that for the preceding 
Democratic administration. 

For the next four years, under the second Cleveland adminis- 
tration, the farm value of the wheat crop aggregated $987,614,943, 
a shrinkage of $525,000,000 in the value of the wheat crop from the 
preceding four years under Republican administration. 

Again came a change of policy in government, and during the 
first four years of the McKinley administration 'the wheat crop 
took another advance in value. For these four years of the Mc- 
Kinley administration the farm value of the wheat crop aggregated 
$1,464,387,877, an increase in value amounting to nearly $500,- 
000,000. For the succeeding three years of the Republican ad 
ministration, 1901-03, the farm value of the wheat crop amounted 
to $1,332,599,099, almost as much in three years as in the pre- 
ceding four years and $344,984,156 more than in the four years of 
the second Cleveland administration. 

The farm value of the oat crop in the four years of the first 
Cleveland administration aggregated $761,943,820; for the next 
four years, under the Harrison administration, the farm value of 
the oat crop increased to $835,395,372; for the next four years, 
under Cleveland, this crop decreased in value to $698,533,113, and 
for the next four years, under McKinley administration, it in- 
creased to $741,217,291. 

During the last three years of the Republican administration 
its aggregate value has been $864,905,294, or $123,688,003 more 
in three years than during the preceding four years of the second 
Cleveland administration. 

The farm value of the hay crop in 1896 was $388,145,614, in 
1900 it was $445,538,870, and in 1903 it was $556,376,880. 

The farm value of the potato crop in 1896 was $72,182,350, in 
1900 it was $90,811,167, and in 1903 it was $151,638,094. 

Farm Animals. 

During the seven years of Republican administration the farm 
animals of the country have increased in value from $1,655,414,- 
612 on January 1, 1897, to $2,998,247,479 on January 1, 1904. 

The number of horses has increased from 14,364,667 to 16,- 
736,0^9, and their value from $452,649,396 to $1,136,940,298. 

The number of mules has increased from 2,215,654 to 2,757,916, 
and their value from $92,302,090 to $217,532,832. 

The number of milch cows has increased from 15,941,727 to 
17,419,817, artd their value from $369,239,993 to $508,841,489. 

The number of cattle, other than milch cows, has increased 
from 30,508,408 to 43,629,498, and their value from $507,929,421 
to $712,178,134. 



138 Af.iiK i i.i thai. PB06PEBITV, 

The number of sheep has Increased from .°>6,818,643 to 51,- 
<•..".<). 144, and their value from $67,020,942 to $183,590,099. 

The number of Bwine has Increased from 40,600,276 to 47,009,- 
987, and their value from $1 (',<;, 2 72, 7 7() to $289,22 1,027. 

On January 1 of the present year there were 116 horses, 124 
mules, LOO milch cows, 143 other cattle, 11(5 swine, and 140 
sheep for every hundred of each kind seven years ago. 

It will readily be perceived from the foregoing figures that 
the increase in total value is far more than proportional to the 
increase in number. The total value of sheep, for example, is al- 
most double, that of mules considerably more than double, and 
that of horses more than two and one-half times as great as it 
was when the Republicans took hold of the administration of the 
eountry seven years ago. 

The "man with the hoe" has only to look at the record to 
see which way points to prosperity. 

Increase of Farm Values. 

The value of the live stock on the farms of the country, which 
was reported by the Agricultural Department in 1896 at $1,727,- 
926,084, was reported at $2,228,123,134 in 1900, an increase of 
$500,197,050, and in 1904 at $2,998,247,479, a further increase of 
$770,124,345, making a total increase in eight years of $1,270,- 
321,395. 

With the increased activity, increased earnings, and increased 
consumption the farmer has* received greatly increased prices for 
his productions. 

The Agricultural Department reports an increase of $353,047,- 
657 in the farmj value of the cereals alone in 1900, as compared 
with 1896, and a further increase of $423,249,664 in 1903, as com- 
pared with 1896, making a total increase of $776,297,321, these 
figures being those of the actual value upon the farm before 
leaving the hands of the producer, while other articles of farm 
production show an equal advance in value. 

The exportation of agricultural products increased from $574.- 
398,264 in 1896 to $844,616,530 in 1900, and to $873,285,142 in 
1903, a total increase of $298,886,878 in the mere surplus re- 
maining after supplying the great and rapidly expanding home 
market. 

Exports of Agricultural Products Under the McKinley, Wilson and 
Dingley Tariffs, Respectively. 

This table shows the exports of leading agricultural pro- 
ducts under the McKinley, Wilson, and Dingley tariffs, respectively, 
in the fiscal years 1894, 1895, 1899, and 1903. The year 1894 was 
the last under the McKinley tariff, that of 1895 the first year 
under the Wilson tariff. (The fiscal year ends June 30, and the 
Wilson law went into effect in August, 1894.) It will be seen 
that there was a reduction in the exports of practically all 
classes of agricultural products under the Wilson law. Under 
the Dingley law there has been a large increase in the ex- 
portation of practically all articles. These stubborn facts are a 
remarkable commentary upon the Democratic assertion that the 
protective tariff hampers our sales abroad. 

Tables of the exports of manufactures presented on another 
page show also that the exportation of manufactures increased 
very greatly under the Dingley tariff, as compared with the Wil- 
son law. The average exportation of manufactures during the 
three years of the Wilson law was 240 million dollars per annum 
and during the last four years of the Dingley law has been over 
400 millions per annum. 

A table presented on another page also shows that the total 
exportation during the 57 years of low tariff was actually 514 
million dollars less than the imports of those years, while in the 
57 years of protective tariff the exports exceeded the imports by 
4,099 millions. 

These facts seem to fully refute the assertion that protection 
destroys or reduces the export trade or the opportunities in for- 
eign markets. 



AGRICULTURAL PROSPERITY. 



139 



Exports of farm products from the United States tinder three 

tariffs. 

[Compiled from reports of Bureau of Statistics.] 



McKinleylaw 
• fiscal 
year 1894. 



"Wilson law, 
calendar 
year 1895. 



Dingle y law, 

fiscal 

year 1899. 



Dingley law, 
1903. 



Cotton 

Breadstuff's (all) 

Provisions (all) 

Flour 

Wheat 

Lard 

Bacon 

Animals (all) 

Cattle 

Corn 

Beef 

Oil cake 

Seeds 

Cheese 

Pork 

Clover seed 

Hides 

Hops 

Tallow 

Flaxseed 

Barley 

Sugar and molasses . . . 

Oats 

Vegetables 

Hay 

Broom corn 

Rye 

Tobacco, unmfg'd 

Fruits and nuts 

Cotton seed oil 



$210,869,298 

166,774,558 

145,262,273 

69,271,760 

59,470,041 

40,089,721 

38,338.357 

35,698.180 

33.455,092 

30,211,154 

25.673.699 

• 8,807,256 

7,942,221 

7,180,331 

5.159,868 

4,540,851 

3,972,494 

3.844,232 

2,766.164 

2,426,284 

2,379,714 

1,717,663 

2,027,934 

1,744,462 

890,654 

210.742 

126.532 

24.087,934 

2,424,239 

6.008,405 



$189,890,645 

125,266,871 

132,456,827 

50.292,886 

40,898.547 

37,348,753 

37,411,944 

33,791,114 

26.997.701 

27,907,766 

25.741 .709 

7,851,246 

1,983,894 

3,401.117 

4,430,155 

1.126.618 

2,835.947 

1,745,945 

1,207,350 

31,076 

1.485.038 

1,300.993' 

599.835 

1.557,483 

701,346 

179.856 

724 

24,707.563 

5.450.878 

6,429,828 



$210,089,576 

273,999,699 

175.508,608 

73.093,810 

104.269,169 

42,208,465 

I 41,557,067 

37.880.916 

30,516,833 

68,977.448 

29,720,258 

14,548,765 

5,079.396 

3.316.049 

10,639.727 

1,264,922 

929.117 

3.626,144 

4.367,356 

2,815.449 

1,375,274 

2.350,718 

9,787,540 

2,799,400 

858,992 

185,902 

5,936.078 

25.467.218 

7,897.485 

12,077,519 



$317,065,271 

221,242,285 

179,839,714 

73,756,404 

87,795,104 

50,854,504 

22,178,525 

34,781,193 

29,848,936 

40,540,637 

36.847.106 

19,839.279 

9,455,283 

2,250,229 

13,364.940 

1.549,687 

1,224,401 

1,909,952 

1.623,852 

5.698,494 

4.662.541 

2,569,248 

1.850,728 

2,543.483 

828.483 

211.250 

3,143.913 

35,250.899 

18.057.677 

14,211,244 



Value of principal farm crops in the United States, December 1, 
1866 to m3. 

[From reports of the Department of Agriculture.] 



Calendar 
year. 



Corn. 



Wheat. 



Oats. 



Rye. 



Barley. 



1867.... 

1868.... 

1869.... 

1870.... 

1871 

1872.... 

1873.... 

1874 

1875.... 

1876.... 

1877.... 

1878.... 

1879.... 

1880.... 

1881.... 

1882.... 

1883.... 

1884.... 

1885.... 

1886.... 

1887.... 

1888.... 

1889.... 

1890.... 

1891 

1892 

1893*... 

1894*... 

1895*... 

1896*... 

1897.... 

1898.... 

1899.... 

1900.... 

1901.... 

1902 

1903.... 



$411 
437 
424 
522 
540 
430 
385 
411 
496 
484 
456 
467 
440 
580 
679 
759 
783 
658 
640 
635 
610 
646 
677, 
597 
754. 



591 
554 
544 
491 
501 
552 
629 
751 
921 
1.017 
952 



,450,830 
,769,763 
,056,649 
,550,509 
,520,456 
,355,910 
,736,210 
961,151 
,271,255 
674,804 
108,521 
635,230 
,280,517 
486,217 
714,499 
,482,170 
,867,175 
,051,485 
735.560 
674,630 
311,000 
106,700 
561,580 
918,829 
433,451 
439,228 
146,630 
625,627 
719,162 
,985,534 
,006,967 
,072,952 
,023,428 
,210,110 
,220,034 
,555,768 
,017,349 
,868,801 



$232,109,630 
308,387,146 
243,032,746 
199,024,996 
222,766,969 
264,075,851 
278,522,068 
300,669,533 
265,881,167 
261,396,926 
278,697,238 
385,089,444 
325,814,119 
497.030,142 
474,201,850 
456,880.427 
445,602,125 
383,649,272 
330,862,260 
275,320,390 
314,226,020 
310,612,960 
385,248,030 
342,491,707 
334,773,678 
513,472,711 
322,111,881 
213,171,381 
225,902,025 
237,938,998 
310,602,539 
428,547,121 
392,770,320 
319,545,259 
323,515,177 
467,350,156 
422,224,117 
443,024,826 



$94,057,945 
123,902,556 
106,355,976 
109,521,734 
96,443,637 
92,591.359 
81,303,518 
93,474,161 
113,133,934 
113,441,491 
103,844,896 
115,546,194 
101,752,468 
120,533,294 
150,243,565 
193,198,970 
182,978,022 
187,040,264 
161,528,470 
179,631,860 
186,137,930 
200,699,790 
195,424,240 
171,781,008 
222,048,486 
232,312,267 
209,253,611 
187,576,092 
214,816,920 
163,655,068 
132,485,033 
147,974,719 
186,405.364 
198,167,975 
208,669,233 
293,658,777 
303,584,852 
267,661,665 



$17,149,716 
23,280,584 
21,349,190 
17,341,861 
11,326,967 
10,927,623 
10,071,061 
10,638,258 
11,610,339 
11,894,223 
12,504,970 
12.201,759 
13,566,002 
15,507.431 
18,564,560 
19,327,415 
18.439,194 
16,300,503 
14,857,040 
12,594,820 
13,181,330 
11,283,140 

12,'009>52 
16,229,992 
24,589,217 
15,160,056 
13,612,222 
13,395,476 
11,964,826 
9,960,769 
12,239,647 
11,875,350 
12,214,118 
12,295,417 
16,909,742 
17,080,793 
15,993,871 



$7,916,342 
18,027,746 
24,948,127 
20,298,164 
20,792,213 
20,264,015 
18,4. 1 5,839 
27,794,229 
27,997,824 
27,367,522 
24,402,691 
2f, 629, 130 
24,454,301 
23,714,444 
30,090,742 
33.862,513 
30,768,015 
29,420,423 
29,779,170 
32,867,696 
31,840,510 
29,464,390 
37,672.032 
32,614,271 
42,140,502 
45,470,342 
38,026,062 
28,729,386 
27,134,127 
29,312,413 
22,491,241 
25,142,139 
23,064,359 
29,594,254 
24,075,271 
49,705,163 
61,898,634 
60,166,313 



♦Pemocratic and low-tariff years. 



AGRICULTURAL PROSPER] n , 



3 cJ 



E-i c9 



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AGRICULTURAL PROSPERITY. 



141 



Wheat Production and Consumption in the United States, 1897 

to 1903. 

Quantities of wheat produced in the United States, and of wheat 
and ivheat flour exported, and retained for consumption, 
1877 to 1899. 

[From the Statistical Abstract.] 



Year ending 
June 30— 



Produc- 
tion, a 



Exports 

of 
domestic. 



Domestic 
retained 
for con- 
sumption. 



Quantity. 





Value 


Per 


of crop 


capita, 


per 




acre. 


Bush. 




5.01 


$14.65 


5,72 


10.15 


5.58 


15.27 


5.35 


12.48 


6.09 


12.12 


4.98 


12.02 


6.64 


10.52 


5.64 


8.38 


6.77 


8.05 


4.57 


8.54 


5.17 


8.25 


5.62 


10 32 


5.34 


8.98 


6.09 


9.28 


4.59 


12.86 


5.94 


8.35 


4.89 


6.16 


3.44 


6.48 


4.59 


6.99 


4.85 


8.97 


3.95 


10.86 


4.29 


8.92 


6.09 


7.18 


4.74 


7.61 


3.95 


9.37 


6.50 


9.14 


5.81 


8.96 



World's 
production. 



1877 

1878 

1879 

1880 

1881 

1882 

1883 

1884 

*1885 

*1886 

*1887 

*1888 

1889 

1890 

1891 

1892 

*1893 

*1894 

*1895 

*1896 

*1897 

1898 

1899 

1900 

1801 

1902 

1903 



Bushels. 
289,356,500 
364,196,146 
420,122,400 
448,756.630 
498,549.868 
383,280,090 
504,185,470 
421,086,160 
512,765,000 
357,112,000 
457,218,000 
456,329,000 
415,868,000 
490,560,000 
399,262,000 
611.781,000 
515,949,000 
396,131.725 
460,267.416 
467,102,947 
427,684,346 
530,149,168 
675.148,705 
547,303.846 
522,229,505 
748,460.218 
670,063,008 



Bushels. 

57,043,936 

92,071,726 
150,502,506 
180,304,180 
186-.321.514 
121,892,389 
147.811.316 
111,534,182 
132,570,366 

94,565,793 
153,804,969 
119,624,344 

88.600,742 
109,430,467 
106,181,316 
225,665,812 
191,912,635 
164.283,129 
144,812,718 
126,443,968 
145,124,972 
217.306,004 
222,618,420 
186,096,762 
215,990,073 
234.772.515 
202,905,598 



Bushels. 
232,312,564 
272,154,520 
269.619,894 
268,452,450 
312,228,354 
261,387,701 
356.374,154 
309,551,978 
380,196,634 
262,543,207 
303,413,031 
336,700,656 
327,267,258 
381,129,533 
293,080,684 
386.114,188 
324,036,365 
231,848,596 
315,454,698 
340.658,979 
282,559,374 
312,843,164 
452,530,285 
361,207,084 
306,239,432 
513,687,703 
467,157,410 



Average 
crop. 

1,944,000,000 



2.115,000.000 

'2,m,ob6,o6o 



2,639,746.000 
2,414,414,000 
2,559,174,000 
2.660,557,000 
2,502,518.000 
2,488.349,000 
2,226.745,000 
2.879,424.000 
2.783,885,000 
2,627,971,000 
2,929,333,000 
3,103,710,000 
3,195,853,000 



♦Democratic and low-tariff years. 

Wheat flour is reduced to wheat at the rate of 4% bushels to 
the barrel. 

Value of Farm Animals Under Harrison, Cleveland, McKinley, and 
Roosevelt. 

After lands and improvements the .greatest item of wealth 
of the American farmer is his live stock, and the value of such 
farm stock is a perfect barometer of his financial condition. 
Practically the Highest point ever reached was at the close of 
1892, the last year of the Harrison Administration, when the 
valuation was $2,483,506,681, the country being prosperous, labor 
fully employed, and wages good. The lowest point reached in 
the past 20 years was at tie close of 1896, when mills were closed, 
tires drawn, labor idle, capital in hiding, and business confidence 
destroyed by four years of Democratic administration. In four 
years the shrinkage of this form of farm wealth had amounted 
to 33 per cent, making $828,091,000 the price which the owners 
of live stock paid for the Democratic experiment of 1892. In the 
years of industrial activity which followed the election of Mc- 
Kinley the value of live stock has kept pace upward with the 
increased earning and spending capacity of American labor, and 
on January 1, 1900, it had advanced to $2,288,375,413, or a rise 
of $632,960,000, or 38 per cent, from the depths of the depression. 
The figures in detail, as shown in the official reports of the 
Department of Agriculture, are as follows : 





Value 


of live stock. 






Jan. 1, 1892, 
Harrison. 


Jan. 1, 1897, 
Cleveland. 


Jan. 1, 1900. 
McKinley. 


Jan. 1, 1904. 
Roosevelt. 


Horses 


$1,007,593,636 
174.882,070 
351.378,132 
570,749,155 
116,121.290 
241,031,415 


$452,649,396 

92,302.000 

369,239,993 

507,929,421 

67.020,942 

166,272,770 


$603,969,042 
111,717.092 
514,812,106 
689.487,260 
122.665.913 
245,725,000 


$1,136,940,298 
217,532,832 
508.841,489 
712,178.134 
133.530,099 
289,224,627 


Mules 




Cattle 




Hogs 




Total 


2,461.755,698 


1,655,414,612 


2,288,375r413 


2,998,247,479 



142 



AGRICULTURAL PRODUCTS— FARM PRICES. 



I'riccs of principal agricultural products on the farm December 1, 
1892, to December 1, 1903— Continued. 

[From report of Department of Agriculture.] 
Corn (per bushel). 



States. 


1892. 


1893. 


1894. 


1895. 


1896. 


1897. 


1898. 


1899. 


1900 


1901. 


1902 


1903. 




Cts 
67 
65 
64 
62 
63 
62 
60 
58 
57 
44 
45 
53 
54 
57 
56 
60 
52 
51 
50 
45 
47 
43 
56 
40 
42 
46 
40 
37 
38 
37 
32 
36 
31 
28 
33 
40 
70 
61 
40 
72 
65 
58 


Cts 
62 
57 
61 
62 
69 
64 
55 
52 
49 
40 
44 
46 
50 
65 
56 
68 
59 
55 
57 
54 
45 
39 
55 
43 
40 
45 
36 
31 
35 
34 
27 
30 
31 
27 
25 
38 
70 
63 
51 
71 
66 
58 


Cts 
72 
76 
69 
61 
75 
68 
61 
54 
55 
45 
50 
47 
47 
60 
58 
71 
53 
49 
62 
56 
47 
39 
57 
44 
43 
50 
37 
39 
45 
43 
45 
40 
43 
50 
46 
44 
82 
65 
61 
75 

100 
58 


Cts 
54 
51 
48 
52 
56 
51 
45 
42 
39 
34 
37 
37 
38 
46 
41 
47 
37 
37 
40 
31 
32 
27 
40 
27 
27 
32 
23 
22 
30 
20 
18 
20 
19 
18 
23 
24 
75 
57 
41 
56 
75 
49 


Cts 
47 
45 
38 
46 
49 
42 
38 
36 
33 
25 
32 
32 
37 
46 
43 
53 
45 
44 
45 
41 
37 
28 
34 
25 
21 
24 
19 
18 
22 
19 
14 
20 
18 
13 
18 
25 
60 
78 
36 
55 


Cts 
47 
45 
43 
47 
54 
49 
40 
38 
34 
30 
30. 
38 
43 
49 
48 
55 
46 
45 
45 
41 
40 
36 
40 
35 
25 
27 
21 
21 
25 
24 
17 
24 
22 
17 
21 
32 
65 
50 
38 
58 


Cts 
48 
46 
44 
49 
64 
52 
43 
40 
40 
31 
35 
35 
43 
46 
48 
50 
41 
39 
41 
34 
29 
29 
37 
27 
27 
34 
25 
25 
28 
24 
23 
27 
26 
22 
23 
36 
66 
55 
40 
56 


Cts 
50 
49 
47 
51 
53 
50 
45 
40 
41 
34 
36 
38 
47 
50 
50 
53 
47 
46 
44 
36 
38 
39 
45 
37 
30 
36 
27 
26 
30 
24 
23 
30 
25 
23 
26 
33 
52 
43 
43 
58 


Cts 
55 
56 
50 
54 
67 
55 
47 
45 
45 
38 
41 
49 
57 
64 
57 
60 
58 
58 
50 
47 
43 
49 
50 
40 
34 
37 
32 
32 
33 
29 
27 
32 
32 
31 
29 
42 
59 
60 
48 
64 


Cts 
76 
78 
73 
76 
76 
75 
72 
66 
62 
57 
58. 
59 
73 
84 
82 
85 
77 
74 
75 
80 
81 
65 
65 
61 
57 
52 
55 
57 
52 
45 
52 
67 
63 
54 
45 
46 
90 
72 
74 
77 
90 
90 


Cts 

74 
73 
68 
74 
78 
74 
67 
56 
58 
49 
51 
52 
60 
69 
73 
77 
67 
61 
66 
66 
49 
47 
54 
42 
42 
52 
36 
36 
50 
40 
33 
33 
34 
30 
4* 
45 
72 
59 
59 
78 
101 
67 


Cts 
66 


New Hampshire 


63 
62 




66 




81 




67 




60 




57 




57 




49 




51 




53 




61 


South Carolina 


69 




69 


Florida 


73 




57 




54 




58 




48 




51 




49 


West Virginia 


64 




56 


Ohio 


47 




46 




36 


Illinois 


36 




43 


Minnesota 


38 




38 




34 




36 




28 




35 


North Dakota 


42 




62 




58 




54 




75 


Arizona 


90 


Utah 


51 


55 


60 


59 


63 


70 






Idaho 


70 
60 
56 
55 


71 
62 
47 
50 


59 
69 

56 
57 


62 
40 
55 
53 












60 

58 
57 
68 
76 
76 


62 

65 
66 
77 
39 
43 


57 


Washington 


57 
56 
53 


55 
53 
56 


42 
60 
62 


I 

60 
20 


59 
57 
61 
26 


55 




67 




74 




38 


















39 
























United States 


39.3 


36.5 


45.7 


25.3 


21.5 


•6.3 


28.7 


30.3 


35.7 


60.5 


40.3 


42.5 









Wheat 


(per bushel.) 












States. 


1892. 


1893. 


1894. 


1895. 


1896. 


1897. 


1898. 


1899. 


1900. 


1901. 


1902. 


1903. 


Maine 


$1.02 


$1.02 


$0.79 


$0.82 


$0.84 


$1.06 


$0.89 


$0.91 


$0.90 


$0.97 


$0.92 


$0.98 


New Hmpshre 


1.00 


.85 


.80 


.76 


1.00 


1.10 


.92 


.95 


.92 








Vermont 


.96 


.85 


.67 


.69 


.93 


1.04 


.90 


.85 


.78 


.94 


1.09 


.95 


Massachusetts 


.97 


















































.87 
.85 






.68 

.68 


"m 


1.00 
.90 


.88 
.72 


.95 

.80 


.82 

.77 








New York 


.76 


.62 


.82 


.79 


.81 


New Jersey... 


.83 


.70 


.61 


.71 


.89 


.93 


.73 


.75 


.74 


.72 


.76 


.82 


Pennsylvania . 


.81 


.65 


.56 


.65 


.83 


.91 


.68 


.66 


.72 


.72 


.73 


.79 


Delaware 


.75 


.60 


.55 


.64 


.87 


.94 


.69 


.68 


.70 


.71 


.75 


.78 


Maryland 


.74 


.76 


.54 


.64 


.88 


.93 


.70 


.68 


.71 


.71 


.72 


.79 


Virginia 


.76 


.63 


.56 


.65 


.80 


.92 


.66 


.69 


.72 


.73 


.79 


.84 


North Car'lina 


.89 


.72 


.65 


.72 


.83 


.94 


.78 


.82 


.82 


.82 


.92 


.97 


South Car'lina 


.93 


.98 


.87 


.88 


.89 


1.18 


.94 


.99 


1.01 


.98 


1.02 


1.01 


Georgia 


.90 


.90 


.76 


.82 


.89 


1.03 


.98 


.98 


.95 


.94 


.98 


.96 


Florida 


























Alabama 


.93 


.88 


.78 


.80 


.85 


1,01 


.90 


.89 


.89 


.88 


.93 


.95 


Mississippi 


.90 


.85 


.75 


.61 


.82 


.99 


.83 


.78 


.84 


.86 


.85 


.93 


Louisiana 


























Texas 


.75 


,58 


.54 


.66 


.75 


.89 


.68 


.68 


.64 


.78 


.77 


.78 


Arkansas 


.80 


.65 


.55 


.59 


.71 


.84 


.58 


.64 


.65 


.78 


.67 


.78 


Tennessee .... 


.68 


.57 


.51 


.62 


.74 


.95 


.67 


.78 


.79 


.74 


.76 


.84 



AGRICULTURAL PRODUCTS—FARM PRICES. 



143 







Wheat (per bushel) 


—Conti 


nucd 












1892. 


1893. 


1894. 










1900. 1? 


©I. 


1902. 19 

$0.82 $0 




States. 


1895. 


1896. U 


97. 


1898. 


1899. 


):?. 


West Virginia 


$0.75 


$0.72 


$0.60 


$0.69 


$0.78 $0 


89 


$0.71 


$0.71 


$0.77 $0 


77 


85 


Kentucky 


.67 


.57 


.50 


.61 




76 


89 


.62 


.66 


.69 


72 


.74 


81 


Ohio 


.68 
.67 


.57 
.57 


.49 
.52 


.60 
.60 




78 
84 


88 
87 


.66 
.64 


.64 
.65 


.71 

.69 


71 
71 


.71 


80 


Michigan 


77 


Indiana 


.64 


.53 


.46 


.57 




80 


89 


.63 


.64 


.70 


70 


.68 


78 




.63 
.62 


.51 
.54 


*.45 
.51 


.53 
.51 




74 

70 


89 

84 


.60 
.59 


.63 
.61 


.64 
.64 


69 
65 


.59 
.64 


75 


Wisconsin 


72 


Minnesota 


.61 


.51 


.49 


.44 




68 


77 


.54 


.55 


.63 


60 


.61 


09 




.60 
.58 


.49 

.48 


.50 
.43 


.46 
.51 




62 

70 


75 

85 


.52 
.59 


.55 

.62 


.59 
.63 


80 

69 


.55 

.58 


62 


Missouri 


71 


Kansas 


.52 


.42 


.44 


.45 




63 


74 


.50 


.52 


.55 


59 


.55 


59 


Nebraska 


.50 


.40 


.49 


.40 




58 


69 


.47 


.49 


.53 


54 


.49 


54 


South Dakota. 


.51 


.44 


.46 


.38 




62 


69 


.50 


.50 


.58 


53 


.51 


62 


North Dakota. 


.52 


.43 


.43 


.38 




64 


74 


.51 


.51 


.58 


54 


.58 


w 


Montana 


.69 


•60 


.54 


.73 




66 


68 


.58 


.61 


.61 


67 


.62 


66 


Wyoming 


.66 


.65 


.63 


.64 




62 


70 


.69 


.67 


.76 


69 


.81 


71 


Colorado 


.58 


.52 


.65 


.56 




61 


70 


.56 


.57 


.59 


67 


.75 


86 


New Mexico.. 


.80 


.75 


.88 


.73 




66 


75 


.62 


.61 


.68 


72 


.86 


75 


Arizona 


.78 


.65 


1.00 


.65 




80 


74 


.92 


.64 


.71 


85 


1.05 


93 


Utah 


.62 
.75 


.60 
.73 


.53 
.75 


.44 
.49 




68 
69 


68 
90 


.54 

.95 


.53 
.76 


.55 

.70 


70 

88 


.76 
.98 


8(1 


Nevada 


99 




.60 

.58 


.60 

.48 


.46 
.39 


.47 
.41 




65 

74 


70 
68 


.51 
.54 


.50 
.51 


.46 
.51 


61 
47 


.70 
.65 


75 


Washington. . . 


69 


Oregon 


.64 


.55 


.43 


.47 




72 


72 


.62 


.53 


.55 


M 


.67 


77 


California 


.68 


.53 


.57 


.60 




83 


88 


.72 


.62 


.58 


60 


.80 


87 








.51 


.48 




68 


76 


.52 


.53 


.53 


63 
4 


.58 
.61 


63 


Ind. Territory. 






89 


United States 


.624 


.538 


.491 


.509 


.726 .8C 


8 


.582 


.584 


.619 .6S 


.630 .695 







OaU 


(per bushel). 














States. 


1892. 


1893. 


1894. 


1895. 


1896. 


1897. 

Cts 
32 
38 
32 
33 
34 
34 
27 
30 
27 
23 
26 
29 
37 
45 
42 
53 
43 
44 
38 
27 
33 
28 
30 
27 
20 
23 
19 
18 
19 
19 
16 
19 
18 
15 
18 
26 
33 
35 
32 
41 


1898. 

Cts 
34 
38 
35 
37 
37 
36 
31 
31 
30 
30 
29 
29 
37 
45 
48 
54 
41 
42 
38 
28 
29 
28 
30 
27 
24 
27 
23 
23 
24 
21 
24 
23 


1899. 

Cts 
38 
39 
37 
38 
37 
37 
33 
33 
29 
25 
30 
33 
41 
47 
48 
50 
43 
50 
40 
30 
34 
32 
35 
32 
25 
28 
23 
22 
23 
22 
19 
24 
22 


1900. 

Cts 
38 
38 
36 
38 
38 
35 
32 
31 
30 
30 
31 
37 
45 
48 
49 
50 
44 
46 
40 
30 
35 
35 
34 
31 
26 
26 
23 
23 
23 
24 
20 
23 
23 
24 
24 
32 
42 


1901. 

Cts 
50 
52 
50 
55 
54 
54 
48 
47 
45 
45 
41 
42 
51 
62 
67 
72 
64 
63 
60 
60 
57 
45 
43 
41 
39 
41 
38 
40 
39 
34 
36 
43 
43 
37 
34 
33 
36 


1902. 


1903. 




Cts 
45 
44 
43 
48 
49 
45 
39 
41 
40 
38 
38 
39 
45 
52 
52 
55 
51 
50 
50 
38 
40 
38 
41 
37 
35 
35 
34 
31 
29 
28 
26 
30 
26 
23 
23 
28 
40 
38 
34 
56 


Cts 
45 
43 
42 
42 
43 
40 
30 
35 
35 
38 
35 
35 
44 
53 
52 
55 
51 
47 
44 
42 
39 
41 
38 
34 
30 
32 
28 
27 
27 
26 
23 
25 
27 
22 
25 
28 
37 
40 
37 
51 


Cts 
44 
49 
51 
43 
47 
43 
39 
38 
38 
35 
39 
37 
44 
53 
51 
61 
51 
47 
47 
39 
40 
35 
39 
36 
31 
34 
30 
39 
30 
30 
28 
29 
31 
36 
35 
29 
31 
48 
46 
50 


Cts 
34 
35 
33 
34 
39 
31 
28 
29 
27 
29 
27 
30 
38 
49 
46 
65 
42 
39 
36 
26 
32 
27 
32 
26 
22 
23 
20 
17 
18 
14 
14 
18 
17 
14 
17 
16 
44 
39 
28 
45 


Cts 
31 
35 
31 
35 
31 
31 
26 
28 
24 
21 
23 
26 
35 
48 
41 
53 
41 
44 
34 
34 
31 
26 
28 
24 
17 
19 
16 
15 
17 
15 
12 
17 
16 
11 
13 
18 
31 
53 
30 
40* 


Cts 
45 
44 
43 
45 
43 
41 
36 
39 
34 
42 
38 
42 
51 
59 
53 
61 
55 
51 
50 
49 
41 
42 
41 
36 
32 
33 
28 
28 
30 
27 
25 
28 
30 
25 
29 
27 
36 
50 
51 
68 
75 
47 
70 
48 
49 
41 
51 
34 
37 


Cts 
45 




48 


Vermont 


44 

49 




45 




45 




41 




43 




37 




40 




40 




43 




52 




59 




55 




60 




54 




51 




46 




44 




44 




4?, 




46 




41 


Ohio k 


3ft 




3ft 




391 




39! 




34 




30 




29 




32 


Kansas 


30 


Nebraska 


20 
21 
26 
35 
40 
41 
41 


22 
23 
27 
39 
40 
42 
44 


27 




29 




31 




35 




47 
43 
48 


48 
50 
60 
60 
51 
70 
44 
35 
34 
44 
50 
46 

39.9 


50 




41 




63 




61 


Utah 


40 


33 


34 


30 


39 


33 


38 


40 


44 


49 




68 


Idaho 


37 
35 

37 
40 


41 
35 
37 
38 


32 
31 

28 
44 


29 
28 
27 
39 


30 
40 
33 
44 


32 
35 
35 

49 


36 
40 
40 
50 


38 
38 
41 
47 


40 
40 
41 
46 


45 
38 


Oregon 

California 


44 
54 




34 


Indian Territory 




















35 




31.7 




32.4 


19.9 


18.7 


21.2 


25.5 


24.9 


25.8 




United States 


29.4 


30.7 


34.1 



144 



PRICES OF ABTICLES OF FARM PRODUCTION. 



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146 



FREIGHT i:\ns <>\ i \km products, 



drain, Chicago to New York, and average rates, in cents, per 

oushd. 

[From Bulletin No. 15, Revised. Miscellaneous Series, of the Divi- 
sion of Statistics.] 



Year. 



1868 
1869 
1870 
1871 
1872 
1873 
1874 
1875 
1876 
1877 
1878 
1879 
1880 
1881 , 
1882, 
1883, 
1884, 
1885, 
1886, 
1887, 
1888. 
1889, 
1890. 
1891 . 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901 . 
1902. 



As re- 
ported 
by New 

York 
Produce 

Ex- 
change. 



Wheat. 



Via lake and rail. 



20.76 
18.80 
19.15 
22.38 
21.91 
23.64 
15.20 
12.71 
10.58 
15.08 
11.31 
13.30 
15.70 
10.40 
10.90 
11.5 
9.55 
9.02 
12 
12 
11 

8.70 
8.50 
8.53 
7.55 
8.44 
7 

6.95 
7.32 
7.37 



6.63 
5.05 
5.57 

5.78 



As re- 
ported 
by Chi- 
cago 

Board of 
Trade 



18.80 
19.58 
22.76 
26.25 
21.63 
15.37 
12.09 
10.19 
14.75 
11.99 
13.13 
15.80 
10.49 
10.91 
11.63 
10 
9.02 
12 
12 

11.14 
8.97 
8.52 
8.57 
7.59 
8.48 
7 

6.96 
6.61 
7.42 
4.91 
6.63 
5.10 
5.54 
5.89 
6.37 



Via all rail. 



As re- 
ported 
by New 

York 
Produce 

Ex- 
change. 



30.49 

26.39 

28.98 

27.75 

29.80 

29.17 

25.81 

20.97 

14.80 

19.37 

17.56 

17.30 

19.90 

14.40 

14.60 

16.5 

13.12 

14 

16.50 

16.33 

14.50 

15 

14.31 

15 

14.23 

14.70 

12.88 

12.17 

12 

12.32 

11.55 

11.13 



As re- 
ported 
by Chi- 
cago 
Board of 
Trade, 



27.09 
26.74 
26.11 
28.47 
31.13 
27.26 
23.61 
20.89 
15.12 
19.56 
17.56 
17.74 
19.80 
14.40 
14.47 
16.20 
13.20 
13.20 
15 

15.75 
14.50 
15 

14.30 
15 

13.80 
14.63 
13.20 
11.89 
12 

12.50 
12 

11.60 
9.96 
9.88 
10.62 
11.29 



Corn. 



Via lake Via all 
and rail. rail. 



As re- 
ported 
by Chi- 
cago 
Board of 
Trade. 



17.71 
19.32 
21.24 
23.67 
20.19 
12.48 
11.34 
9.68 
13.42 
10.45 
12.20 
14.43 
9.42 
10.28 
11 

8.50 
8.01 
11.20 
11.20 
10.26 
8.19 
7.32 
7.53 
7.21 
7.97 
6.50 
6.40 
6.15 
6.92 
4.41 
5.83 
4.72 
5.16 
5.51 
5.78 



As re- 
ported 
by Chi- 
cogo 
Board of 
Trade. 



25.28 
24.96 
24.37 
26.57 
29.06 
25.42 
22.03 
19.50 
14.12 
18.03 
16.39 
14.56 
17.48 
13.40 
13.50 
15.12 
12.32 
12.32 
14 

14.70 
13.54 
12.6 
11.36 
14 

12.96 
13.65 
12.32 
10.29 
10.50 
11.43 
9.80 
10.08 
9.19 
9.21 
9.94 
10.54 



Live stock and dressed meats, Chicago to New York, 
freight rates, in cents, per 100 pounds. 



Average 





Cattle. 


Hogs. 


Sheep. 


Horses 
and 

mules. 


Dressed 
beef. 


Dressed hogs. 


Year. 


Refrig- 
erator 
cars. 


Com- 
mon 
cars. 


1880 


55 
35 
36 
40 
31 
31 
33 
33 
22 
25 
23 
27 
28 
28 
28 
28 
28 
28 
28 
25 
28 
28 
28 
28 


43 
31 
2!) 
32 
28 
26 
30 
32 
26 
30 
28 
30 
28 
20 
30 
30 
30 
30 
30 
25 
30 
30 
30 
30 


65 
61 
53 
50 
44 
43 
42 
40 
31 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
25 
30 
30 
30 
30 


60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 


88 

56 

57 

64 

51 

54 

6t 

62 

46 

47 

39 

45 

45 

45 

45 

45 

45 

45 

45 

40 

45 

42.9 

41.2 

45 






1881 






1882 






1883 






1884 






1885 






1886 






1887 


59 

46 

47 

39 

45 

45 

45 

45 

45 

45 

45 

45 

40 

45 

42.9 

41.2 

45 


64 


1888 


44 
45 
39 


1889 


1890 


1891 


46 


1892 


45 


1893 


45 


1894 


45 


1895 


45 


1896 .% 

1897 


45 
45 


1898 


45 


1899 


40 


1900 


45 


1901 


42.9 


1902 


41.2 


1903 


45 








FREIGHT RATES ON GRAIN, FLOUR, AND PROVISIONS. 



147 



Average freight rates on grain, flour, and provisions, in cents per 
100 pounds, through from Chicago to European ports, by all rail 
to seaboard and thence by steamers, from 1894 to 1903. 



Shipped to— 


Articles. 


1894. 


1897. 


1900. 


1903. 


Liverpool 

Do 




32.5 

33.16 

44.06 

34.63 

35.03 

46.59 

32.88 

34.93 

45.75 

46.88 

50 

50 

50 

55.31 

66.56 

55.31 

62.5 


33.6 

36.81 

44.4 

35.23 

39.06 

52.5 

34 

36.12 

48.14 

51.09 

51 

52 

52 

57.28 

68.53 

57.28 

64.13 


29.48 

27.9 

48.84 

30.98 

31.56 

55.31 

31.1 

35.01 

55.87 

51.09 

50 

51 

51 

55.31 

64.5 

55.31 

64.12 


22.68 


Sacked flour 

Provisions 


25.19 


Do 


41.9 




24.43 


Do 


Sacked flour 

Provisions 


25.38 


Do 


46.88 




23.56 


Do 


Sacked flour...... 

Provisions 

do 


25.19 


Do 


44.06 




49.69 




do 


47 




do 


42 




do 


42 




do 


49.69 




do 


52.5 


Stettin 


do 


49.69 




do 


56.25 









Average annual freight rates from 1870 to 1903. 
[From Statistical Abstract.] 



Year. 


Freight rates on 
wheat per bushel. 


Freight rates on can- 
n e d g o o ds, per 
cwt., from Pacific 
coast to New 
York. 




Chicago 

to New 

York, by 

rail. 


Buffalo 
to New 
York, by 

canal. 


Less 
than car- 
loads. 


In car- 
loads. 


1870 


Cents. 

33.3 

31 

33.5 

33.2 

28.7 

24.1 

16.5 

20.3 

f7.7 

17.3 

19.9 

14.4 

14.6 

16.5 

13.1 

14 

16.5 

15.7 

14.5 

15 

14.3 

15 

14.2 

14.7 

12.9 

12.2 

12 

12.3 

11.6 

11.1 

10.0 

9.9 
.10.6 

11.3 


Cents. 
11.2 
12.6 
13. 
11.4 
10. 
7.9 
6.6 
7.4 
6. 
6.8 
6.5 
4.7 
5.4 
4.9 
4.2 
3.8 
5. 
4.5 
3.4 
4.8 
3.8 
3.5 
3.5 
4.6 
3.2 
2.2 
3.7 
2.8 
2.8 
3 

2.5 
3.5 
3.8 
4 


$3.66 
3.76 
3.74 
3.69 
- 3.78 
3.66 
3.77 
4.06 
4.17 
4.20 
4.20 
2.54 
1.50 
1.50 
1.50 
1.50 
1.18 
1.55 
1.89 
2.30 
2.30 
2.30 
3.30 
2.30 
2.30 
2.30 
1.91 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 


$3.66 
3.76 
3.74 
3.69 
3.78 
3.66 
3.77 
4.06 
4.17 
4.20 
4.20 
2.54 
1.50 
1.50 
1.41 
1.25 
1.01 
1.20 
1.13 
1.06 
1.00 
1.09 
1.05 
1.00 
1.00 
1.00 
.75 
.76 
.75 
.75 
.75 
.75 
.75 
.75 


1871 


1872 


1873 .. 


1874 


1875 


1876 


1877 


1878 


1879 


1880 


1881 


1882 


1883 


1884 


1885 


1886 


1887 


1888 


1889 


1890 


1891 


1892 


1893 


1894 


1895 


1896 


1897 


1898 


1899 


1890 


1901 


1902 


1903 





148 FARM AND FACTORY. 



VALUE OF THE FACTORY TO THE 
FARMER. 



Practical and Statistical Evidence that Manufacturing Establish- 
ment!* Increase the Earnings of Farmers in the Section Where 
Located and Advance the Permanent Value of Farm Properties — 
A Comparison of Conditions in the Manufacturing and Non- 
manufacturing .Sections, Based Upon Official Figures. 

The table here presented illustrates by figures taken from 
official reports the value to the farmer of the location of manu- 
facturing industries in his immediate vicinity. That the exist- 
ence of a great manufacturing industry in the country — an indus- 
try which employs 5 million people and pays wages and salaries 
amounting to 2% billions of dollars per anuum — is of great 
value to the farming interests goes without saying, but that the 
location of the factory in the immediate vicinity of the farm 
adds to the value of that farm and to the earnings of those who 
own or occupy it is also true. 

Mr. McKinley remarked in the House of Representatives in 
the discussions of the Fiftieth Congress that "the establishment of 
a furnace or factory or mill in any neighborhood has the effect at 
once to enhance the' value of all property and all values for miles 
surrounding it ;" and Thomas B. Reed, of Maine, inquired, 
"Which is it better for the farmer to do — send his surplus a 
thousand miles to the seacoast, 3,000 miles across the water and 
sell it to the mechanic who gets less wages, or sell it right here 
at home to the mechanic who gets more wages?" "Every farmer 
knows," said Representative Brewer, of Michigan, in the Fiftieth 
Congress, "that he cannot send to foreigners his potatoes, vege- 
tables and many other things which he grows upon the farm 
and that he must rely upon the home market for the same, and 
this is why the lands in rough and rocky New England and sterile 
New Jersey are more valuable than are fertile lands in Michigan 
and Minnesota." 

"The extraordinary effect," said President Grant, in a mes- 
sage to Congress, "produced in our country by a resort to diver- 
sified occupations has built a market for the products of fertile 
lands destined for the seaboard and the markets of the world. 
The American system of locating various and extensive manu- 
factories next to the plow and the pasture and adding connect- 
ing railroads and steamboats has produced in our distant in- 
terior country a result noticeable by the intelligent portions of 
all commercial nations." 

The table which follows, made up from official figures, is in- 
tended to illustrate, in some degree, the effect upon the farm and 
its occupant of the proximity of manufacturing industries. In 
preparing this table that part of the United States lying north of 
the Potomac and Ohio rivers and east of the Mississippi has been 
taken as the chief manufacturing section of the country, and the 
value of the farm lands and farm products in that section is 
contrasted with that in the other part of the United States, which 
has comparatively little manufacturing and may be termed the 
agricultural but non-manufacturing section. The portion of the 
United States designated as the manufacturing section in this 
table and discussion, then, includes all of the New England and 
Middle States and Maryland, District of Columbia, Ohio, Indiana, 
Illinois, Wisconsin, and Michigan. This manufacturing section 
contains, speaking in round terms, one-half (50.9 per cent) of 
the population of the United States, while the agricultural but 
non-manufacturing section, lying south of the Potomac and Ohio 
rivers and west of the Mississippi, contains the other half (49.1 
per cent. ) of the population. In the section north of the Potomac 
and Ohio rivers and east of the Mississippi is produced 77 per 
cent, of the manufactures of the country, and in the other section 
23 per cent., as shown by the reports of the census of 1900, Tn§ 



FARM AND FACTORY. 149 

section designated as the manufacturing section has no advan- 
tage in soil or climate over large portions of the other section. 

More than one-half of the wheat, two-thirds of the corn, all of 
the cotton, and by far the largest share of the meat and wool sup- 
ply of the United States are produced in the agricultural and 
non-manufacturing section, while more than three-fourths of the 
manufactures are produced in the manufacturing section, the popu- 
lation in the two sections being practically equal. 

This division of the territory of the United States into these 
two great sections — each containing one-half of the population, 
the one performing approximately three-quarters of the manufac- 
turing of the United States and the other approximately three- 
fourths of the agricultural industry of the country— gives an op- 
portunity for a broad, intelligent and absolutely fair study of 
the effect of the proximity of the factory upon the farmer as 
relates to the value of his property and its annua* production 
and of his own earning power as an individual. It will be 
seen by a study of the table that the average value per acre 6f 
all farm lands in the manufacturing section in 1900 was, ac- 
cording to the census, $24. per acre, and in the non-manufactur- 
ing section, $12 per acre ; and the average value of lands and 
buildings in the manufacturing section, $32 per acre, and in the 
non-manufacturing section, less than $15 per acre ; while the value 
per acre of improved land only, including buildings, was, in the 
manufacturing section, $58 per acre, and in the other section but 
$31. The average value of buildings, which represent in some 
degree the savings of the farmer, was in the manufacturing sec- 
tion, $15 per improved acre and in the non-manufacturing sec- 
tion $5.50 per improved acre, while of implements used upon the 
farms the value per improved acre in the manufacturing sec- 
tion was nearly twice as great as in the non-manufacturing sec- 
tion. Coming to the value of farm products, the average value 
per improved acre in the manufacturing section was $141, and in 
the non-manufacturing section $101. The average value per head 
of milch cows in the manufacturing section was $33, and in the 
other section $27. The average value per head of horses in the 
manufacturing section was $60, and in the non-manufacturing 
section $43, and the average value of farm products per person 
engaged was, in the manufacturing section, $619, and in the non- 
manufacturing section, $394. 

Thus in all of these evidences of prosperity, earnings, value 
of property, etc., the condition of the farmer in the manufactur- 
ing section was, according to the figures of the last census, much 
higher than that in the non-manufacturing section, despite the fact 
that the non-manufacturing section has soil, climate, lands, and 
producing power quite as favorable and in many cases more 
favorable than those of the manufacturing section. In the great 
and final measure of relative prosperity of the farmer in the two 
sections, as indicated by the item "Average value of farm prod- 
uts per person engaged," the earnings of the farmer in the manu- 
facturing section are 57 per cent, greater than those in the non- 
manufacturing section whose soil, climate, etc., and producing 
capacity certainly equal, if they do not surpass as a whole, those 
of the manufacturing section as a whole. 

Another measure of the relative prosperity of the people of 
the two sections is found in the deposits in savings banks, in 
which the per capita in the manufacturing section is $57, and in 
the non-manufacturing section less than $7, while of deposits in all 
banks the per capita in the manufacturing section is $153 and in 
the other section $37. The assessed value of real and personal 
property, that measure of accumulations and permanent pros- 
perity, is, in the manufacturing section, $606 per capita and in the 
non-manufacturing section $278 per capita, while in other evi- 
dences of prosperity, such as salaries paid to teachers in public 
schools, newspapers circulated, etc., the per capita is also greatly 
in favor of the manufacturing section. 

This table is compiled in every particular from official sta- 
tistics, chiefly those of the census of 1900, though in a few in- 
stances those of" the Department of Agriculture, where the latter 
could be utilized to obtain data for a later year than the census. 

Attention is called to the map of the United States on the 
cover of this volume, which indicates the two sections here dis- 
cussed and some of the countries presented. 



150 



FARM AN!) FACTORY. 



Relative conditions of prosperity in the manufitctiirinu and von- 

inanufiuturiny sections of the t'nitcd States, respect irely* 

[From Census of 1900.1 



M TeS rinK Other S ta te». 



Per cent of total population of United States. . 

Per cent of total area of United States 

Gross value of manufactures in 1900 

Per cent of total manufactures produced in 
section 

Salaries and wages paid in manufactures in 1900, 

Number of persons employed in manufactures 
1900 

Average value per acre of all farm lands 

Average value per acre of all lands and buildings. 

Average value per acre of land (improved 
only) and buildings 

Average value of buildings per improved acre. . 

Average value of implements owned per im- 
proved acre 

Average value per head of milch cows 

Average value per head of horses 

Average value of all farm products, per im- 
proved acre 

Average value of farm products per person 
engaged 

Deposits in savings banks, total 

Deposits in savings banks, per capita 

Deposits in all banks, total 

Deposits in all banks, per capita 

Bank clearings, total 

Bank clearings, average per capita 

Banking resources, total 

Banking resources, average per capita 

Real and personal property, assessed valuation 

Real and personal property, per capita 

Salaries paid teachers in public schools 

Newspapers published, number 

Newspapers, aggregate circulation 



50.9 


49.1 


14.1 


85.9 


$10,021,718,461- 


$2,988,318,053 


77 


23 


$2,194,936,683 


$536,471,656 


4.437.714 


1,273,917 


$24.07 


$12.78 


$32.50 


$14.85 


$58.60 


$31.65 


$15.25 


$5.54 


$2.54 


$1.47 


$33.62 


$27.46 


$60.87 


$43.32 


$141.00 


$101.40 


$619.25 


$394.50 


$2,200,439,838 


$249,108,047 


$56.90 


$6.67 


$5,949,984,845 


$1,384,666,395 


$153.80 


*37.10 


$76,356,970,422 


$8,225,479,659 


$1,973.50 


$220.40 


$8,613,200,000 


$2,167,500,000 


$222.65 


$58.10 


$23,445,809,898 


$10,388,667,238 


$606.25 


$278.50 


$85,234,961 


$52,452,785 


9,151 


9,075 


6,168,125,616 


2,000,023.133 



♦Manufacturing section includes area north of the Potomac 
and Ohio and east of the Mississippi, viz., the New England and 
Middle States, and Maryland, District of Columbia, Ohio, Indiana, 
Illinois, Michigan, and Wisconsin. 

PROGRESS IN flANUFACTURINQ IN THE UNITED STATES. 

The following table shows the gross value of manufactures in 
the United States at each census year since 1850: 

1850 $1,019,106,616 

1860 1,885,861,676 

1870 4,232,325,442 

1880 / 5,369,579,191 

1890 .* 9,372,437,283 

1900 13,039,279,566 

Divided into principal groups, the showing for 1900 is : 

1. Food and kindred products $2,272,702,010 

2. Iron and steel, and their products. . 1,793,490,908 

Textiles 1,637,484,484 

Hand trades 1,183,615,478 

Lumber and its manufactures 1,030,906,579 

Miscellaneous industries 1,004,092,294 



Metals, other than iron and steel . . 748,795,464 

Paper and printing 606,317,768 

Leather and its finished products. . 583,731,046 

10. Chemicals and allied products 552,891,877 

11. Vehicles for land transportation... 508,649,129 

12. Liquors and beverages 425,504,167 

13. Clay, glass and stone products.... 293,564,235 

14. Tobacco 283,076,546 

15. Shipbuilding 74,578,158 

This grand result gave employment to 5,316,802 wage earners 

earning $2,328,691,254; 307,174 officials and clerks earning $404,- 

230,274 in 512,734 establishments. 

Conservatively estimating the increase in all lines for the three 

years since 1900 and bearing in mind the immense immigration of 

each year we can safely assume our present industrial position 

to be: 

Establishments 600,000 

Workers and officials 7,000,000 

Yearly wages and salaries $3,750,000,000 

Yearly product $15,000,000,000 

Wealth $100,000,000,000 



SHEEP AND WOOL INDUSTRY. 151 



THE SHEEP AND WOOL INDUSTRY. 



Some Figures on the Losses Under Free Trade in Wool. 

The losses to the sheep and wool producers of the country 
through the Wilson-Gorman tariff law which placed wool on the 
free list are well remembered in general terms, but the actual 
figures regarding the fall in the value of sheep and the reduction 
in the number of sheep and the wool produced are such as to 
justify presentation. The figures of the Department of Agricul- 
ture show that the number of sheep in the United States on 
January 1, 1893, two months after the election of President Cleve- 
land, was 47,273,553, and their value $125,909,254. The same 
authority, the Department of Agriculture, operating under a 
Democratic Administration, showed on Jan. 1, 1896, the closing 
year of President Cleveland's term, 30,818,643 sheep in the United 
States and their value $67,020,942. Here is a decrease of more 
than 10 millions, or nearly 25 per cent in the number of sheep and 
a decrease of 58 million dollars, or nearly 50 per cent in their 
value during President Cleveland's term, under which wool was 
placed on the free list. By January 1, 1903, the number of 
sheep had reached 63,964,876, and the value $168,315,750, an in- 
crease of practically 75 per cent in the number, and 150 per cent 
in the value of the sheep in the country. This, however, is not 
all of the loss to the farmer — a loss of nearly 60 million dollars 
in the value of sheep alone. There was also a great loss in wool. 
The quantity of wool produced in 1893 was 303 million pounds 
and by 1895 had fallen to 209 million pounds and did not again 
reach the 300 million line until 1901, when it was 302 millions, 
and in 1902, 316 millions. Here was a reduction of practically 
one-third in the quantity of wool produced in 1895 as compared 
with 1893. But even this does not .measure the loss, since the 
value per pound of the reduced production was far below that of 
prior years. Wool price quotations published by the Bureau of 
Statistics show that grades of wool which sold at 35 cents per 
pound in 1891 had fallen to 19 cents per pound in 1896 and by 

1901 were again above the price of 30 cents per pound. A care- 
ful estimate of the value of the wool product of the United States 
made by an eminent authority on the subject puts the total value 
of the wool product of the country in 1892 at 79 million dollars, 
and in 1896 at 32% millions, a loss of 46% millions. Adding this 
loss in wool to the 58 million dollars loss in value of sheep, above 
quoted, gives a grand total of the loss to the farmer in the value 
of sheep and wool of over 100 million dollars for a single year 
for which this calculation is made, or approximately 400 million 
dollars for the four years of the Cleveland Administration. In 

1902 the value of wool was estimated by experts at $65,000,000, 
or double that of 1896. 



Effect of Protection and Free Trade in Regard to Sheep. 

[Extracts from remarks of Hon. C. H. Grosvenor of Ohio-, in daily 
Congressional Record, June 7, 1900.] 

The official reports of the United States Government upon the 
subject of sheep raising and sheep values, which I will present, 
teach a wonderful lesson. 

From 1878 to 1882, inclusive, the Morrill tariff (protection) 
was in force, and the number of sheep throughout the country 
increased by over 11,000,000 during this period. 

The tariff of 1883 was in force from 1883 to 1889, inclusive. 
The duties imposed by this tariff upon raw wool amounted to no 
more than a revenue tariff on yarns and some other goods pro- 
duced from wool ; consequently the result of this tariff as a whole 
was not protective. Under its operation the number of sheep 
throughout the United States decreased by about 6,000,000. 

The McKinley tariff, passed in 1890, was a scientific tariff as 
applied to wool growing, with the result that the number of 
sheep throughout the country increased by nearly 4,000,000 be- 
fore the free-trade election of 1892. 



152 



SHEEP AND Wool. I NIHNTKY. 



The Wilson tariff, with free trade la wool, practically wont 
into effect when Mr. Cleveland was elected, and Immediately the 
Hocks throughout the country began to decrease, and from 1883 
to 1896 decreased by abou4 9,000,000. 

The Dingley tariff reimposed the scientific schedules of the 
McKinley tariff, and with the promise of protection through the 
election of William McKinley and a Republican Congress the 
sheep raising industry immediately began to prosper. From J896 
to and including #00 the number of sheep increased by 1,042,411. 

The effect of protection and free trade in regard to the number 
of sheep owned throughout the country is not more Impressive 
than the effect as to value. Under the Morrill tariff the lowest 
price per head was $2.09 and the highest $2.55. Under the tariff 
of 1883 the lowest price per head was $1.91 and the highest price 
was $2.27. Under the McKinley tariff the lowest price was $2.49 
and the highest price $2.6G. Under free trade the lowest price was 
$1.58 and the highest price $1.92. Under the Dingley tariff the 
lowest price was $2.75 per head, and now the value has advanced 
to $3.90 per head, the highest average price in the history of the 
nation. 

Report of the United States Government on sheep raising from 
1878 to 1898, inclusive, and report for 1900, based upon the 
sheep-raising census of the American Protective Tariff League. 



Year. 


Number 
of sheep. 


Average 

price 
per head. 


Total 
value. 


The Morrill tariff: 

1878 


38,123,800 
40,765.900 
43,576,899 
45,016.224 
49.237,291 

50.626,626 
50.360.243 
48.322,331 
44,759,314 
43,544,755 
42,599.079 
44,336.072 

43.431.136 
44.938,365 
47,273,553 

45,048,017 
42,294.064 
38,298,783 
36.818.643 

37.656,960 
39.114,453 


$2.09 
2.21 
2.39 
2.37 
2.52 

1.37 
2.14 
1.91 
2.01 
2.05 
2.13 
2.27 

2.49 
2.58 
2.66 

1.98 
1.58 
1.70 
1.82 

2.46 

2.75 


$79 023 984 


1879 


90,230.537 


1880 


104,070.759 


1881 


106,594.954 


1882 


124,365.835 


The tariff of 1883: 

1883 


119,902,706 


1884 


107 960 650 


1885 


92,443,867 


1886 


89 872 839 


1887 


89 279 926 


1888 


90,640,369 


1889 


100,659,761 


The McKinley tariff: 

1890 


108,397,447 


1891 


116,121 290 


1892 


125,909.264 


The Wilson tariff, free trade in wool. 

1893 


89,186,110 


1894 


66,685,767 


1895 


65.167,735 


1896 


67,020,942 


The Dingley tariff: 

1897. . . 


92 721 133 


1898 


107,697.530 


1899 a 




1900 


63,121,881 


3.90 


246,175,335 







a United States Government report for 1899 not yet published. 

In 1890 we had arrived at the lowest stage of the wool-growing 
industry since the rebellion, and possessed 30,818,043 sheep, which, 
under the fostering care of protection, were increased to 03,121,881. 

The value of our sheep in 1890 was $07,020,942, and under the 
fostering care of protection has reached the enormous value of 
$240,175,335. In the history of industrial and economic condi- 
tions of the world no more wonderful result can be shown. 

Over $664,000,000 Loss in Two Years In Live Stock. 



[Extract from remarks of Hon. Francis E. Warren, of Wyoming, 
in the Senate of the United States, and printed in the daily Con- 
gressional Record, January 23, 1896.] 



LXVE STOCK TABLE. 

A comparison between Republican and Democratic Adminis- 
trations as shown by the values of domestic animals, horses', mules, 
cattle, sheep, and swine: 

When we. resumed specie payment in 1879 our domes- 
tic animals, horses, mules, cattle, sheep, and swine 
were valued at $1,445,423,062 



SHEEP AND WOOL INDUSTRY. 153 

During the ensuing six years, until the election of 

Mr. Cleveland in 1884, the values increased to.... 2,467,868,924 

A gain during six years of Republican rule of . . 1,022,445,862 

I During the ensuing four years, until the election of 

Mr. Harrison in 1888, values decreased from 2,467,868,924 

To 2,409,043,418 

A loss during four years of Democratic rule of. . 58,825,506 

During the ensuing four years, until the second elec- 
tion of Mr. Cleveland in 1892, values again in- 
creased from 2,409,043,418 

To 2,461,755,698 

A gain during four years of Republican rule of. . 52,712,280 

During the last two years, under the second adminis- 
tration of Mr. Cleveland and under proposed and 
accomplished free trade and sweeping tariff reduc- 
tions, values again decreased from 2,483,506,681 

To the comparatively insignificant total of 1,819,446,306 

Showing the enormous loss in two years of 
Democratic rule of 664,060,375 

Mr. President, over $664,000,000 loss in two years in live stock ! 
Do the American people comprehend this? That their losses in 
live stock alone have been $1,100,000 for every working day during 
the past two years? And this, too, in these piping times of boasted 
plenty, prosperity, and pugnacity — toward England ! 



CLASSIFIED TABLE. 



Mr. President, I will give the classified shrinkages for the last 
one year quoted as to both numbers and values. All classes shrank 
except milch cows. 





Number. 


Value. 




17.229 

187.821 

19.123 

2,243,952 

1,040.782 


$3,603,068 
192,494,219 
35.304,977 
53,790,618 
50,883,359 




Mules shrank .'. 


Oxen and other cattle shrank 


S wine shrank 





But it remained for sheep to show the most disastrous shrink- 
age in both numbers and value, and to mark most plainly the poi- 
sonous effect of an un-Republican policy. 

SHEEP TABLE. 

In 1884, under Republican policy, our sheep were 1 

50,626,626 in numbers and of the value of $119,902,706 

Under the influences of the threatened Mills bill they 
s'hrank to 42,599,079 in numbers and to the value 
Of 90,640,369 



A shrinkage of 8,027,547 head and in value.... 29,262,337 



From the lowest point recorded under the Mills bill 
fright up to 1893, under Republican guardianship, 
sheep increased to 47,273,553 in numbers and to 

the value of 125,909,264 

An increase of 4,674,474 head and an increase in 
value of 35,268,895 



But again upon Mr. Cleveland's second election we 
turn backward and downward as usual under the 
blighting, withering influence of a wrong policy, 
and in two years sheep decreased to 42,294,064 

head, of the value of 66,685,767 

A loss of 4,979,489 head and a loss in value of. . 59,223,497 

A shrinkage in two short years of nearly one-half! 

THE OTHER SIDE OF THE LEDGER. 

Now, to exhibit the other side of the ledger. Here is a statis- 
tical table (I ask to have it incorporated in my remarks) which 
shows our importation of wool has increased to nearly triple, not 
in two years nor three years, but in the first ten months of this, 
present year, ended October 31, 1895, 



154 



SHEEP AND WOOL INDUSTRY. 



Imports of tvool (in pounds). 





Ten months ending October— 




1894. 


1895. 


Class 1 


K, 807.462 

8,841.422 

54,574.386 


113 672 709 


Class 2 


I6,7:n,9h5 

80,052,544 


Class 3 




Total 


83,223,270 


811,057.388 






1,081.441 


17,824.008 





Wool production, imports, consumption, and manufacture in the 
United States; also price of wool and value of sheep on farms, 
1875 to 1900. 

[From the Statistical Abstract of the United States, 1903.] 









4 


Value of imports 


ilu 


Sheep on farms 


=•, 






*i 


of wool, and man- 


£•" ft 


in the United 


=s! 






*. o 


ufactures of. 


°* P-ri 


States.:): 


cS 


Produc- 
tion. 


Imports. 


1 o 

u ft 
» s 

■ 




Price of 

washed ck 

Ohio fleec 

poun 




5" 


Wool, 
raw. 


Manufac- 
tures of 
wool. 


Number. 


Value. 




Pounds. 


Pounds. 




Dollars. 


Dollars. 


Cents. 




Dollars. 


1875.... 


181,000,000 


54,901,760 


22.1 


11,071,259 


44,609,704 


48 


33.783,600 


94,320,652 


1876.... 


192,000,000 


44,642.836 


18.3 


8,247,617 


33,209,800 


45 


35,935,300 


93,666,318 


1877.... 


200,000,000 


42,171,192 


19 3 


7.156,944 


25,701.922 


48 


35.804,200 


80 892.683 


1878.... 


208,250,000 


48,449,079 


16.9 


8,363,015 


25.230,154 


35 


35,740,500 


80,603,062 


1879.... 


211,000,000 


89,005,155 


14.2 


5,034,545 


24.355,821 


41 


38,123,800 


79,023,984 


1880.... 


232,500,000 


128,131.747 


84.9 


23,727,650 


33,911,093 


46 


40,765,900 


90,230,537 


1881.... 


240,000,0011 


55,964,236 


17.3 


9,703,968 


31,156,426 


43 


43,569,899 


104,070,759 


1882.... 


272,000,000 


67,861,744 


19.0 


11 096,050 


37,361,520 


42 


45,016,224 


106,595,954 


1883.... 


290,000,000 


70,575,478 


18.7 


10,919,331 


44,274,952 


39 


49,237,291 


124,366,335 


1884.... 


300,000,090 


78,350,651 


20.6 


12,384,709 


41,151,583 


35 


50,626,626 


119,902,706 


1885.... 


308,0" 0,000 


70,596,170 


18.0 


8,879,923 


35,776,559 


33 


50,360,243 


107,960,650 


1886.... 


302,000,000 


129,084,958 


28.9 


16,746,081 


41,421,319 


35 


48,322,331 


92,443,867 


1887.... 


285.00k.00C 


114,038,030 


27.4 


16.424.479 


44,902,718 


32 


44,759,314 


89.872,839 


1888.... 


269,000,000 


113,558,753 


28.9 


15.887,217 


47,719,393 


31 


44,544,755 


89,279,1)26 


1889.... 


265,000,900 


126.487,729 


31.8 


17,974,515 


52,564,942 


33 


42,599,079 


90,640,369 


1890.... 


276.000,000 


105,431.285 


27.0 


15,264,083 


56.582,432 


33 


44,336,072 


100,659,761 


1891.... 


285.000,090 


129,303,648 


30.8 


18,231,372 


41,060,080 


31 


43,421,136 


108,397.440 


1892.... 


294,000,00( 


148,670,652 


33.1 


19,688,108 


35,565,879 


29 


44,938,365 


116,121,290 


1893.... 


303,153,00( 


172,433,838 


35.7 


21.064,180 


38,048,515 


23 


47.273,553 


125,909 260 


1894 §.. 


298,057,384 


55,152,585 


14.2 


6,107,438 


19,439,372 


19 


45,048,017 


89,186,110 


1895 §.. 


809.748.00C 


206,033,906 


40.0 


25,556,421 


38,539,89( 


18 


42,294,064 


66,685,767 


1896 §.. 


272,474,708 


230.911,473 


45.9 


32,451,242 


53,494,400 


18 


38,298,783 


65.167.735 


1897 §.. 


259,153.251 


350,852,026 


57.8 


53,243,191 


49,162,992 


27 


36,818,643 


67,020,042 


1898.... 


266,7^0,68^ 


132,795,202 


32.8 


16,783,692 


14,823.771 


28y 2 


37,656,960 


92.721,133 


1899.... 


272.191.330 


76,736,209 


19.2 


8,322,897 


13,832,621 


81 


39,114,453 


U'7,607,530 


1900.... 


288,636,621 


155,928,455 


34.4 


20,260,936 


16,164,446 


26M, 


59,756,718 


178,072,476 


1901.... 


302.502.328 


103,583.505 


24.9 


12,529,881 


14,583,306 


25 


62,039,091 


164,446,091 


1902.... 


316.341.032 


1*56.576,966 


34.1 


17,711,788 


17,384,463 


28 


63,964,876 


168,315,750 


1903.... 


287.450,000 


177,137,796 


37.8 


22,152,961 


19,546,385 


32 


51,630,144 


133,530,099 



|On October 1 of each year. 

$On January 1 of year named. 

§Democratic and low tariff years. 

Note.— The importations of wool and woolen goods in the fiscal 
year 1894 were held back to obtain the reduction in duties by the 
Wilson act, then pending-, and which went into effect August 
28, 1894. 



The rich manifestations of our commercial power, our military 
und naval strength, great and splendid as they are, are not to be 
counted when compared with the moral and Intellectual grandeur 
of our people. — Hon. C. W. Fairbanks, at Baldwin, Kas., June 7, 
1901. 

It is, of course, a mere truism that we -want to use everything 
in our power to foster the welfare of our entire body politic. In 
other words, we need to treat the tarift* as a business proposition, 
from the standpoint of the interest of the country as a whole, and 
not with reference to the temporary needs of any political party.— 
President Roosevelt at Minneapolis, April 4, 1903. 



BEET SUGAR. 155 



BEET SUGAR. 

'he fact that about a hundred million dollars' worth of sugar 
is brought from abroad each year to meet the demands of the 
people of the United States, coupled with the belief that the 
production of this great sugar supply by our farmers is possible, 
renders proper a careful consideration of the effect of the recent 
legislation by which sugar from Porto Rico and the Hawaiian 
Islands is admitted free of duty, that from the Philippines at 
25 per cent below, and that from Cuba at 20 per cent below the 
regular tariff rates. Will the absolute removal of all duty un 
sugar from Porto Rico and the Hawaiian Islands and the reduc- 
tion of 25 per cent, on sugar from the Philippines and 20 per cent, 
on that from Cuba destroy the beet-sugar industry in the United 
States or work to its disadvantage? While it is a fact that the an- 
nexation of Hawaii and its organization as a Territory and cus- 
toms district of the United States removed permanently all tariff 
on merchandise from those islands or passing into them from the 
United States, that fact made no change in the rates of duty on 
sugar from the islands, its only effect being to render absolutely 
permanent the conditions which had existed ever since the treaty 
of 1876, by which sugar from the Hawaiian Islands was admit- 
ted free on agreement that products of the United States should 
be admitted into the Hawaiian Islands free of duty, and that 
condition continued down to the annexation of Hawaii, when 
it was made permanent, as above indicated. * In the case of 
Porto Rico all of the duty except 15 per cent, was removed by 
the act establishing the government for Porto Rico, and the re- 
mainder of that duty disappeared ns soon as tie Porto Rican 
government announced its ability to provide its own revenues. 
The reduction of 25 per cent in the rates of duty on merchandise 
from the Philippine Islands occurred March 8, 1902. 

EFFECT ON THE HOME PRODUCES. 

All of these removals of duty on sugar from our own possessions 
have been in force a sufficient length of time to give opportunity to 
test their effect upon domestic sugar production. The quantity 
of sugar imported from Porto Rico increased from 86,607,317 
pounds in the fiscal year 1897 to 201,247,040 pounds in the calen- 
dar year 1903. The sugar imports from the Hawaiian Islands 
have increased from 431,196,980 pounds in 1897 to 858,268,351 
pounds in the calendar year 1903 ; and those from the Philippine 
Islands decreased from 72,463,577 pounds in the fiscal year 1897 
to 65,348,247 pounds in the calendar year 1903— the reduction in 
imports of sugar being, of course, due to the destruction of plan- 
tations and machinery during the war. Thus the quantity of 
sugar imported from Porto Rico, Hawaii, and the Philippine 
Islands in 1903 was practically double that of 1897. The entire 
quantity of sugar brought into the United States in the calendar 
year 1903 amounted to 4,388,388.809 pounds. Of this total im- 
portation, 1,059,515,391 pounds came from Porto Rico and the 
Hawaiian Islands, and was absolutely free of duty, and this 
formed 24.5 per cent, or practically one-fourth, of the total; 
while that from the Philippine Islands, which amounted to 
65,348,247 pounds, came in with a reduction of 25 per cent, of 
the regular duty and formed about 1% per cent, of the total. 
Thus practically one-fourth of the sugar coming into the United 
States in 1903 was admitted absolutely free of duty from the 
Hawaiian Islands and Porto Rico. In 1897 the amount which 
came in free of duty from the Hawaiian Islands was 431,196,980 
pounds, and this formed 8.9 per cent, of the total sugar importa- 
tion of that year. 

INCREASE OF BEET SUGAR PRODUCTION SINCE THE ANNEXATION OF 
HAWAII AND PORTO RICO. 

Here, then, -is a fair basis upon which to determine the 
effect of the importation of sugar from our own pos- 
sessions free of duty. In 1897 practically 9 per cent, of the sugar 
imported came in free of duty. In 1903 practically 25 per cent. 



15(5 B 'I' SUGAR. 

ctBM in free of duty, if such free importation wore likely to 
affect disadvantagoously beet sugar production at home, an in- 
crease from 9 per cent, to 25 per cent, in the importations of free 
sugar would doubtless have made itself apparent by a reduction 
in the sugar production of the United States. But let us see what 
the beet sugar production of the country was in the two years 
in question— 1897, when 9 per cent, of the sugar was imported 
free, and 1903 when 25 per cent was imported free. The reports 
of the Department of Agriculture and Bureau of Statistics show 
that the beet sugar produced in the United States amounted in 
1897 to 88,892,160 pounds. By 1899 it had increased to 141,230,160 
pounds; by 1901 to 279,682,160 pounds; and in 1908 was .154,541,120 
pounds. Here, then, is an increase of 524 per cent, in the beet 
sugar production of the United States during the very period 
in which free importation of sugar from Porto Rico was estab- 
lished and that from Hawaii made absolutely permanent by an- 
nexation and its establishment as a customs district of the United 
States, and in which period the quantity of sugar imported free 
of duty increased 150 per cent. If an increase of 150 per cent 
in the quantity of sugar imported free of duty, coupled with ab- 
solute assurance that the sugar fields of Porto Rico and Hawaii 
are to have permanently free access to the markets of the United 
States, was accompanied by an increase of 524 per cent in the pro- 
duction of beet sugar at home, there seems little ground for any 
anxiety as to the effect of free sugar importation from our own 
territory in depressing beet sugar production at home. 

CUBAN RECIPROCITY WILL NOT PROVE INJURIOUS. 

Regarding the reduction of 20 per cent on sugar provided by 
the recent reciprocity agreement, the question of its effect upon 
beet sugar production in the United States was very thoroughly 
discussed in Congress before that body would agree to the reci- 
procity treaty. In the course of that debate Representative 
Charles L. Knapp, of New York, presented a series of tables re- 
lating to sugar importation, home production, and consumption, 
and said: 

"While the exact effect cannot be foretold with mathematical 
accuracy, it can be foretold with exact certainty that after the re- 
duction proposed on beet sugar that industry will still remain one 
of the most highly protected of all our industries, and it is a fair 
and reasonable assumption that such reduction will neither jeopar- 
dize nor injure the industry." 

. Representative McCall, of Massachusetts, who gave the sub- 
ject careful attention before lending his support to the treaty, 
said: 

"The effect upon the beet-sugar industry has caused alarm to 
those representatives from states largely interested in the manu- 
facture of beet sugar. I do not think it is in a particle-of danger. 
Suppose that the reduction proposed by this bill to 1.35 cents a 
pound on raw sugar should measure the entire protection that 
would exist upon sugar after the passage of this bill (and I feel 
confident that it will not) I think it is susceptible of demonstration 
that the protection will be substantially what it is at the present 
time. In testimony taken before the Committee on Ways and 
Means two years ago our collector at Habana, Mr. Bliss, testified 
that he had examined the returns from eight different plantations 
and found that the average cost of making sugar there and taking 
it to the port of shipment was 2 1-16 cents per pound. Mr. Atkins, 
a successful business man and sugar manufacturer, reached sub- 
stantially the same conclusions. All the evidence that could be 
called evidence went to show that it cost the Cuban at least 2 
cents a pound to make his raw sugar. Now, if you add to this the 
1.35 cents (the duty) and to that you add the freight rate, insur- 
ance, and other charges, the Cuban cannot afford to sell his sugar 
in New York for less than three and about seven-eighths of a cent 
per pound. And it must after that be refined, so that a price 
would be reached at which it would clearly be profitable to make 
refined sugar here. Mr. Oxnard, who has been as much identified 
with the manufacture of beet sugar as any man in the United 
States, put forth a statement, after he had been engaged in that 
business nine years, to the effect that at 4 cents a pound and 
allowing the farmer $4 a ton for his beets, there was then a profit 
of about 43 per cent, upon the cost of the material and labor em- 
ployed, in selling the refined product at 4 cents a pound. Not a 
small profit by any means. As a matter of fact, he would get 
nearer 5 than 4 cents a pound. Is it not clear, therefore, that under 
this duty of 1.35 cents per pound, which is a specific duty equivalent 
to an ad valorem duty of nearly 80 per cent, including the freight, 
our beet sugar producers have nothing whatever to fear?', 



BEET SUGAR. 



157 



NO CAUSE FOB ALARM. 

On this subject Representative James E. Watson, of Indiana, 
said in the House of Representatives on November 19, 1903: 

"The cost of 100 pounds of Cuban sugar, f. o. b. at Habana, is 
$2.00. The freight to New York is 9 cents per hundred pounds; 
the duty, after a 20 per cent, reduction, would be 1.348 cents. The 
cost of refining is known by all to be 0.625 cents for every 100 pounds, 
without any profit to the refiner. The freight to Chicago is 29 
cents a hundred. So that to land 100 pounds of Cuban sugar al- 
ready refined, in the market in Chicago, would cost exactly $4.35 a 
hundred, and to land it in Kansas City would cost $4.42 a hundred. 

"H. M. Stewart, president of the Kalamazoo Sugar Company, 
when before the committee, made the following statement: 'The 
total cost per 100 pounds on refined beet sugar is $4,682, which in- 
cludes 5 per cent, interest on the capital invested and 7 per cent, 
annual depreciation; leaving out these two items the cost of each 
100 pounds of refined sugar is $4,011.' To this sum should be 
added 13 cents a hundred pounds, freight from Kalamazoo to Chi- 
cago, so that it would cost the Michigan producer $4.14 to land 100" 
pounds of his product in the Chicago market, while it would cost 
$4.35 for the Cuban planter to do the same thing. 

"W. L. Churchill, president of the Bay City Beet Sugar Com- 
pany, said: T can assure you that we will make sugar this year 
at a cost not to exceed $2.60 or $3.75 per 100 pounds.' Assuming 
that the freight rate is 13 cents per 100, it would cost that com- 
pany not to exceed $4.05 to lay down 100 pounds of its product in 
the Chicago market, as against $4.35 for the Cuban planter, a dif- 
ference in favor of the home product of 30 cents a hundred, a 
difference great enough to lift the Michigan grower above the pos- 
sibility of harm from his dusky competitor. 

"Francis K. Carey, president of the National Sugar Manufac- 
turing Company, of Sugar City, Colo., said: T believe the cost of 
sugar in Colorado under normal conditions, which we will sooner 
or later have, surrounding our factory, ought not to be over 3 cents 
a pound. If I am mistaken in my belief I am free to admit that I 
have no standing before this committee and no right to ask for the 
protection of my industry.' 

"Thomas R. Cutler, president of the Utah Sugar Company, 
shows that the beet sugar industry of Utah has nothing to fear 
from Cuban competition and gives the average cost to his company 
of refined sugar for five years as follows: 

'1897 $4.51 per hundred. 

1898 4.46 per hundred. 

1899 3.55 per hundred. 

1900 3.55 per hundred. 

1901 3.42 per hundred. 

The average cost of producing sugar for these five years was $3.86 
per hundred, and the average selling price, $5.76, or a clear profit 
of $1.90 per hundred.' Furthermore it may be said that even after 
the proposed reduction of 20 per cent., the rate on sugar will still 
be about 65 per cent., which is higher than the tariff rate on any 
import save alone tobacco, the average rate on all importations 
being a little under 49 .per cent., so that there is no cause for un- 
due alarm at the prospect of the passage of this bill." 

Tables published on page 158 show the importation of sugar 
into the United States, the home production of various kinds of 
sugar, and the total home consumption for a term of years; also 
the quantity brought into the United States from Porto Rico, 
Hawaii, the Philippine Islands, and Cuba, respectively, from 1895 
to 1903; also the total product of beet and cane sugar, respectively, 
in the world during a long term of years. 



Production of Cane and Beet Sugar In the Principal Producing Coun- 
tries of the World for the Sugar Year 1903-4. * 



Countries. 


Cane sugar 
production. 
Gross tons. 


Countries. 


Beet sugar 
production, 
Gross tons. 




886,000 
1.130,000 
393,000 
277,000 
175.000 - 
164,000 
215,000 
1,227,000 


Germany 


1,936 500 




Austria 


1,144,600 






765,900 

1,142,400 

196 000 


Brazil 










Holland 


121 200 




All other 


586,400 










5,893.000 




4,417,000 









♦Figures for cane sugar production taken from Willett and 
Gray's Sugar Trade Journal. April 21, 1904; figures for beet sugar 
production taken from Die Deutsche Zuckerindustrie, Berlin, April 
39, 1904, 



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BEET SUGAK. 



159 



World's supply of beet and cane sugar, from 1840 to 1904. 



Years. 



Beet sugar 
(tons.) 



Cane sugar 
(tons.) 



Total sugar 
(tons.) 



Per cent 

supplied by 

beet. 



1840 

1850 

1860 

1870 

1871-72. . 
1872-73. . 
1873-74. . 
1874-75. . 
1875-76. . 
1876-77.. 
1877-78. . 
1878-79. . 
1879-80. . 
1880-81.. 
1881-82. . 
1882-83. . 
1883-84. . 
1884-85. . 
1885-86. . 
1886-87. . 
1887-88. . 
1888-89. . 
1889-90. . 
1890-91 . . 
1891-92.. 
1892-93. . 
1863-94. . 
1894-95. . 
1895-96. . 
1896-97. . 
1897-98. . 
1898-99. . 
1899-1900 
1900-01 . . 
1901-02. . 
1902-03. . 
1903-04. . 



50.000 
200.000 
389,000 
831,000 
1,020,000 
1.210.000 
1,288.000 
1,219,000 
1,343,000 
1,045,000 
1,419.000 
1,571,000 
1,402.000 
1,748,000 
1,782,000 
2,147,000 
2,361.000 
2.545.000 
2,223,000 
2,733.000 
2.451,000 
2,725.000 
3.633.000 
3,710,000 
3,501,000 
3,428,000 
3,890.000 
4,792,000 
4,315,000 
4,954.000 
4,872,000 
4,977,000 
5,510.000 
6,066.939 
6,923.482 
5,747,630 
6,058,135 



1,100.000 
1,200,000 
1,510,000 
1,585,000 
1,599.000 
1.793,000 
1,840,000 
1,712,000 
1,590,000 
1,673,000 
1.825.000 
2,010,000 
1.852,000 
1,911,000 
2,060,000 
2,107.000 
2.323,000 
2,351.000 
2,339.000 
2,345,000 
2,465,000 
2.263.000 
2.069,000 
2,555,000 
2,852,000 
3,045,000 
3,490,000 
3,530,000 
2,830,000 
2,864,000 
2,898.000 
2,995.000 
2,904.000 
3.638,428 
4.079,046 
4,124,329 
4,294,619 



1.150,000 
1,400.000 
1.899,000 
2,416,000 
2,619.000 
3,003.000 
3,128,000 
2.931,000 
2,933,000 
2,718,000 
3,244,000 
3,581.000 
3.244,000 
3.659.000 
3.842,000 
4,254,000 
4.684,000 
4,896,000 
4,562.000 
5,078,000 
4,916,000 
4,988,000 
5,702.000 
6,265,000 
6,353,000 
6.473.000 
7.380.000 
8.322,000 
7,155.000 
8,818.000 
7.770,000 
7,973.000 
8,414,000 
9,705.367 

11.002.528 
9,889,959 

10,352,754 



4.35 
14.29 
20.43 
34.40 
36.65 
40.29 
41.17 
41.59 
45.79 
38.44 
43.75 
43.87 
43.22 
47.77 
46.38 
50.47 
50.40 
51.98 
48.73 
53.82 
49.86 
54.63 
63.71 
59.22 
55.10 
52.96 
52.71 
57.58 
58.91 
56.18 
62.70 
62.42 
65.48 
62.5 
62.9 
58.1 
58.4 



I am opposed to free trade because it degrades American labor; 
I am opposed to free silver because it degrades American money. — 
Maj. Wm. McKinley to Homestead workingmen, Sept 12, 1896. 

American wage-workers work with their heads as well as their 
hands. Moreover, they take a keen pride in what they are doing; 
so that, independent of the reward, they wish to turn out a per- 
fect job. This is the great secret of our success In competition 
with the labor of foreign countries. — President Roosevelt, in mes- 
sage to Congress, Dec. 3, 1901. 

Not only must our labor be protected by the tariff, but It should 
also be protected so far as It is possible from the presence in this 
country of any laborers brought over by contract, or of those who, 
coming freely, yet represent a standard of living so depressed that 
they can undersell our men in the labor market and drag them 
to a lower level. — President Roosevelt} in message to Congress, 
Dec. 3, 1901. 

The Government should provide in Its contracts that all work 
should be done under "fair" conditions, and in addition to setting 
a high standard should uphold it by proper inspection, extending, 
if necessary, to the subcontractors. — President Roosevelt, in mes- 
sage to Congress, Dec. 3, 1901. 

The certain way of bringing great harm upon ourselves, with- 
out in any way furthering the solution of the problem, but, on the 
contrary, deferring indefinitely its proper solution, would be to act 
in a spirit of ignorance, of rancor, in a spirit which would make us 
tear down the temple of industry in which we live because we are 
not satisfied with some of the details of its management. — Presi- 
dent Roosevelt at Fitchburg, Mass., Sept. 2, 1902. 

I am President of all the people of the United States, without 
regard to creed, color, birthplace, occupation, or social condition. 
My aim is to do equal and exact justice as among them all. — Presi- 
dent, Roosevelt, in a statement to executive council American Fed- 
eration of Labor, Sept. 29, 1903. 



160 PUBLIC LANDS. 



PUBLIC LANDS. 



President Roosevelt's Public Lnad Policy. 

President Roosevelt, more than any of his predecessors, has 
manifested an active interest and exercised a potent influence 
in endavoring to establish and put into execution a wise public 
land policy, modified to meet existing conditions. 

Much of the unparalleled development of the material re- 
sources of the United States in the past has been due to its 1I1>- 
eral public land laws, chief among which is the homestead law, 
which was signed by President Lincoln in 18G2. Under its 
beneficent provisions millions of settlers have established homes 
upon the public domain, and as a result the great West is to-day 
teeming with the industry of a thrifty people of good citizen- 
ship and many new stars have been added to the flag. But what 
was once a vast .public domain— then thought to be almost inex- 
haustible — embracing an area of over eighteen hundred million 
acres, through the operation of the homestead and other land 
laws, enacted to meet conditions prevailing at a time when culti- 
vable lands as well as timbered and grazing areas were abun- 
dant, was materially decreased until the remaining public do- 
main, exclusive of Alaska, now embraces less than five hundred 
million acres, a comparatively small portion of which is suscepti- 
ble of cultivation without irrigation. 

New conditions thus arose: the extravagant denuding of the 
timbered areas, the rapidly diminishing extent of the remaining 
public lands available for settlement, together with the increased 
demand for cultivable lands, accentuated by increased popula- 
tion, satisfactory industrial conditions, and revival of busi- 
ness in the last few years, rendered necessary and of 
the utmost importance, new legislation affecting the pub- 
lic lands, in order that the remaining forests and nec- 
essary timber supply might be duly protected, the necessary 
sources of water supply needed for the reclamation of the arid 
regions properly conserved, and the remaining public land avail- 
able for settlement saved for disposal to the bona fide home- 
builder, under such circumstances and conditions as would en- 
able the same to be reclaimed and thereby rendered capable of 
its largest beneficial use. In recognition of this, the Congress 
passed the act of March 3, 1891, authorizing the creation of forest 
reserves, under which there have since been created fifty-six re- 
serves, aggregating over 63,000,000 acres of land. The establish- 
ment of necessary forest reserves having become a well-fixed 
part of our national policy, the aid of the government in reclaim- 
ing the arid lands of the West and rendering the same available 
for settlement and cultivation was essential, as a necessary com- 
plement to this policy. 

IRRIGATION. 

Although there had been more or less discussion for years as 
to the necessity for national aid in irrigation, nothing effective 
was accomplished until Theodore Roosevelt became President. 
He was quick to recognize not only the necessity, but also the 
national importance of such policy, together with the benefits 
to accrue to the people therefrom. 

President Roosevelt, in his first message to Congress, took a 
strong advanced position in favor of great storage works to save 
the flood waters and to equalize the flow of streams, maintaining 
that this work should be carried on by the National Government 
and not by private efforts. He declared that it was as right for 
the National Government to make the streams and rivers of the 
arid region useful by engineering works for water storage as to 
make useful the rivers and harbors of the humid region by engi- 
neering works of another kind. He took the position that the 
Government should construct and maintain these reservoirs as 
it does other public works, and that the lands reclaimed by aid 
of irrigation should be reserved by the Government for actual 



PUBLIC LANDS. 161 

settlers. The cost of construction should, so far as possible, be 
repaid by the land reclaimed. He declared that the reclamation 
and settlement of the arid lands will enrich every portion of our 
country, as the settlement of the Ohio and Mississippi valleys 
brought prosperity to the Atlantic States. 

NATIONAL RECLAMATION LAW. 

Congress enacted the national reclamation law June 17, 1902, 
and it is considered the most beneficent public land law passed 
since the enactment of the homestead law. The passage of this 
law was due largely to the previous recommendation of the 
President after he had lent the weight of his influence to the 
perfecting of its provisions in the interest of the actual settler 
and to the exclusion of the speculator. 

Realizing that the passage of the reclamation act emphasized 
the importance of saving the public 'lands for the home-builder, 
the President devoted particular attention thereto in his second 
message, declaring that "so far as they are available for agricul- 
ture, and to whatever extent they may be reclaimed under the 
national irrigation law, the remaining public lands should be 
held rigidly for the homebuilder, the settler who lives on his 
land, and for no one else." 

The President in this message also directed attention as to 
the best manner of using public lands in the West which are 
suitable chiefly, or only, for grazing, and he commended this 
matter to the earnest consideration of Congress, recommending, 
•if the latter experienced any difficulty in dealing with the subject 
from lack of knowledge, that provision be made for a commis- 
sion of experts specially to investigate and report upon the same. 
Subsequently, a commission was appointed by the President, 
which has already submitted a partial report, making sundry 
recommendations for the modification of existing land laws in 
the interest of actual settlers. Tiiis report the President sub- 
mitted to the favorable consideration of Congress. 

Under the provisions of the reclamation act over $20,000,000 
have already been covered into the Treasury of the United States 
to the credit of the reclamation fund, derived from the sales of 
public lands and fees and commissions in the several States and 
Territories affected by that act, and more than 33,000,00 acres 
of public land have been withdrawn for reclamation purposes 
with a view to determining the feasibility of contemplated 
projects. Sixty-seven projects in fourteen different States and 
Territories have been under consideration and examination, and 
the work of actual construction has been commenced on eight 
of these 

President Roosevelt, by reason of his intimate association with 
Western people, his actual experience in that section of the coun- 
try, and accurate knowledge of the prevailing conditions in the 
public land states, is exceptionally well qualified to properly 
judge of the requisite needs of that part of the country and has 
exercised a forceful influence toward the perfecting of a wise, 
discriminating, up-to-date public land policy, and when so per- 
fected will see to it that the same is carefully and properly ad- 
minister. Such a policy, perhaps, more than any other single 
consideration, is essential to the prosperity of the West and the 
happiness of its people, will add to the material wealth and de- 
velopment of the whole country, and should commend itself to 
every thoughtful citizen. 

"The Policy of Washington is the policy of the Republican 
party." — Oullom. 

"The safety and Interest of the people require that they should 
promote such manufactures as tend to render them independent of 
others." — Washington. 

"No men living; are more worthy to be trusted than those who 
toil up from poverty; none less inclined to take or touch aught 
which they have not honestly earned,"— -Lincoln. 

"The American system of locating; manufactories next to the 
plow and the pasture has produced a result noticeable by the fh«% 
telllgent portion of all commercial nations,"— Grant. 



162 lamuATioN. 



IRRIGATION FOR ARID AND SEMIARID LANDS. 

Irrigation for the arid and somiarid lands of the United States 
bat never had a firmer and more vigorous supporter in public lit'*' 
than President Roosevelt. During the decade before he became 
President the subject of national Irrigation had been under dis- 
cussion and there was growing throughout the country a senti- 
ment in favor of national action of some character upon.- this sub- 
ject. There was, however, wide diversity of opinion as to the 
method to be employe)!, and this very condition of diverse opinions 
reduced the probability of national action. When Mr. Roosevelt 
became President, however, knowing conditions in the great West 
as he did, and knowing the henelits which would accrue to it from 
systematic work in behalf of irrigation, he consulted with the 
men who had been working for national irrigation, discussed con- 
ditions with them an<! told them of his belief in action by the 
National Government and his intention to make irrigation one of 
the topics of his first message to Congress. No President of the 
United States had ever before mentioned irrigation in a message. 
The following are extracts from his discussion of this subject 
in his first message to Congress, December 3, 1901 : 

The forests alone can not, however, fully regulate and con- 
serve the waters of the arid region. Great storage works are 
necessary to equalize the flow of the streams and to save the 
flood waters. Their construction has been conclusively shown to 
be an undertaking too vast for private effort, nor can it be best ac- 
complished by the individual States acting alone. Far-reaching in- 
terstate problems are involved, and the resources of single State* 
would often be inadequate. It is properly a national function, at 
least in some of its features. It is as right for the National Gov- 
ernment to make the streams and rivers of the arid region useful 
by engineering works for water storage as to make useful the 
rivers and harbors of the humid region by engineering works of 
another kind. The storing of the floods in reservoirs at the head- 
waters of our rivers is but ar»^enlargement of our present policy 
of river control, under which levees are built on the lower reaches 
of the same streams. 

The Government should construct and maintain these reser- 
voirs as it does other public works. Where their purpose is to 
regulate the flow of streams the water should be turned freely 
into the channels in the dry season to take the same course under 
the same laws as the natural' flow. 

The reclamation of the unsettled arid public lands presents a 
different problem. Here it is not enough to regulate the flow of 
streams. The object of the Government is to dispose of the land 
to settlers who will build homes upon it. To accomplish this ob- 
ject water must be brought within their reach. 

The pioneer settlers on the arid public domain chose their 
homes along streams from which they could themselves divert the 
water to reclaim their holdings. Such opportunities are practi- 
cally gone. There remain, however, vast areas of public land 
which can be made available for homestead settlement, but only 
by reservoirs and main-line canals impracticable for private en- 
terprise. These irrigation works should be built by the National 
Government. The lands reclaimed by them should be reserved by 
the Government for actual settlers, and the cost of construction 
should, so far as possible, be repaid by the land reclaimed. The 
distribution of the water, the division of the streams among irri- 
gators, should be left to the settlers themselves, in conformity 
with the State laws and without interference with those laws or 
with vested rights. The policy of the National Government should 
be to aid irrigation in the several States and Territories in such 
manner as will enable the people in the local communities to help 
themselves and as will stimulate needed reforms in the State laws 
and regulations governing irrigation. 

The reclamation and settlement of the arid lands will enrich 
every portion of our country, just as the settlement of the Ohio 
and Mississippi valleys brought prosperity to the Atlantic States. 
The increased demand for manufactured articles will stimulate 
industrial production, while wider home markets and the trade of 
Asia will consume the larger food supplies and effectually prevent 
western competition with eastern agriculture. Indeed, the prod- 
ucts of irrigation will be consumed chiefly in upbuilding local cen- 
ters o-f mining and other industries, which would otherwise not 
come into existence at all. Our people as a whole will profit, for 
successful home making is but another name for the upbuilding 
of the nation. 

The necessary foundation has already been laid for the inau- 
guration of the policy just described. It would be unwise to begin 
by doing too much, for a great deal will doubtless be learned, both 
as to what can and what can not be safely attempted, by the early 
efforts, which must of necessity be partly experimental in char- 
acter. At the very beginning the Government should make clear, 
beyond shadow of doubt, its intention to pursue this policy on 
lines of the broadest public interest. No reservoir or canal should ever 
be built to satisfy selfish personal or local interests, but only in ac- 



IRRIGATION. 



163 



cordance with the advice of trained experts, after long investi- 
gation has shown the locally where all the conditions combine to 
make the work most needed and fraught with the greatest useful- 
ress to the community as a whole. There should be no extrava- 
gance, and the believers in the need of irrigation will most benefit 
their cause by seeing to it that it is free from the least taint of 
excessive or reckless expenditure of the public moneys. * * * 

The direct result of his action was the passage of the reclama- 
tion act. 

The reclamation act sets aside the proceeds of the disposal of 
public lands in thirteen Western States and three Territories for 
national irrigation. The fund thus created is placed at the dis- 
posal of the Secretary of the Interior for surveys, examination, 
and construction of works. It is not a donation, but the money 
must ultimately be returned to the Treasury by the persons bene- 
fited, to be used over again in the construction of other works. 
General Irrigation Statistics. 

The following table, prepared by the Census Office, gives, by 
regions, the number of farms on which irrigation was reported, 
the number of acres irrigated, the construction cost of the irriga- 
tion systems, the average construction cost per irrigated acre, and 
the number of miles of main canals and ditches for continental 
United States in 1902: 

Table I. — General irrigation statistics of the United States, 1002. 





Number 
of farms 
irrigated. 


Number 
of acres 
irrigated. 


Cost of construction. 


Length 
of main 
ditches 
in miles. 


Regions. 


Total. 


Per acre 
irrigated. 


The United States 

AridStatesandTerritories 
Semiarid States and Teri- 


134,036 
122,156 

7,021 

4,179 

680 


9.487.077 
8,471,641 

403.449 
606,199 

5,788 


$93,320,452 
77,430,212 

5,105,390 
10,195,992 

588,858 


$9.84 
9.14 

12.65 
16.82 
101.74 


59,243 
54,243 

3 472 


Rice States 


1,528 


Humid States 















The number of irrigated farms increased from 110,556 in 1899 
to 154,036 in 1902, or 21.2 per cent. The irrigated area increased 
during the same period from 7,782,188 acres to 9,487,077 acres, or 
21.9 per cent. For the three years this is an average annual in- 
crease in number of irrigated acres of 568,296 acres. 

In 1902 the total construction cost of the necessary head gates, 
dams, main canals, and ditches, wells,' reservoirs, and pumping 
plants was $93,320,452, an increase since 1899 of $21,797,672, or 
30.5 per cent. This is equivalent to an annual expenditure of more 
than seven and a quarter millions of dollars for the construction, 
extension, and improvement of irrigation systems. The average 
first cost of water for irrigation throughout the United States in- 
creased from $9.19 per irrigated acre in 1899 to $9.84 in 1902. 
This naturally follows because in many of the States practically 
all of the easily available water supply was appropriated long 
ago, and methods required for its further development must be 
increasingly expensive. In 1902, the aggregate mileage of main 
canals and ditches would encircle the earth more than twice, the 
combined length being 59,243 miles. 

The Arid Region. 

Table II. — General irrigation statistics of the arid States and 
Territories, 1002. 





Number 
of farms 
irrigated. 


N«ftber 

ofwcres 
irrigated. 


Cost of construction. 


Length 


States and Territories. 


Total. 


Per acre 
irrigated. 


ditches 
in miles. 


Arizona \ 


3,867 

30.404 

19.806 

10,077 

9,496 

2,260 

9,285 

5,133 

21,684 

4,585 

5,559 


247,250 

1,708,720 

1,754,761 

715,595 

1,140.694 

570,001 

254,945 

439,981 

713.621 

154.962 

773,111 


$4,688,298 
23,772,157 
14,769.561 
6,190,071 
5.576,975 
1,706.212 
4.301,915 
2.089,609 
7.303.607 
2,330,758 
4,701.049 


$18.96 
13.91 
8.42 
8.67 
4.89 
2.99 
16.37 
4.75 
10.23 
15.04 
6.08 


1,783 
7,010 
10,209 
5.640 
8 765 


California 


Colorado 


Idaho 


Montana 




3,054 
2 846 


New Mexico 


Oregon 


3,653 
3,891 
1.095 
6.297 


Utah 








Total 


122,156 


8,471,641 


77,430.212 


9.14 


54,245 





164 



iui:k:atioN. 



While conditions in 11)02 were somewhat below the average it 
many portions of the arid region, in each of the nine states an 
two territories comprising it Irrigation made considerable progre/s 
during the three years ending with 1902. In that year the ir 
gated area of the entire region aggregated 8,471,641 acres, an 
crease since 1899 of 1,208,308, or 16.6 per cent. In number of 
farms the increase is even greater, being from 102.811) farms in 
1899 to 122,156 in 1902, or 18.8 per cent. The total construct ion 
cost of the" irrigation systems was $77,430,212 as compared with 
164,289,601 in 1899, an increase of $13,140,611, or 20.4 per cent. 
The average first cost of water per acre was $9.14 and the com- 
bined length of main canals and ditches, 54,243 miles. 

Of these States and Territories, California ranks first in num- 
ber of irrigated farms, Utah second, and Colorado third. In total 
irrigated area Colorado stands first, California second, and Mon- 
tana third. 

Semlarid Region. 

Table III. — General irrigation statistics of the semiarid States 
and Territories, 1902. 





Number 
of farms 
irrigated. 


Number 

of acres 

irrigated. 


Cost of construction. 


Length 
of main 
ditches 
in miles- 


States and Territories. 


Total. 


Per acre 
irrigated. 




1.115 

2,952 
102 
134 
696 

2.022 


28.922 
245.910 
10.384 
3.328 
53.137 
61.768 


$599,098 

2.463,748 

45,087 

36,770 

381,569 

1,579.118 


$20.71 
10.02 

4.34 
11.05 

7.18 
25.57 


366 




1,861 
66 






89 




426 




664 






Total 


7,021 


403,449 


5.105,390 


12.65 


3,472 







♦Exclusive of rice irrigation. 

Portions of Kansas, Nebraska, North and South Dakota, Okla- 
homa, and Texas extend 'into the semiarid region which lies east- 
ward from the base of the Rocky Mountains. In 1902, the area 
to which water was artificially applied was 403,449 acres, repre- 
senting 7,021 farms. There were 2,946 irrigation systems in opera- 
tion, the construction cost of which was $5,105,390, an average 
first cost of water of $12.65 per irrigated acre. The increase since 
1899 in the number of irrigated farms is 43.4 per cent. ; in irri- 
gated area, 52.6 per cent., and in total construction cost, 76.5 per 
cent. 

Of these six political divisions Nebraska, with 2,952 farms 
having an irrigated area of 245,910 acres and systems represent- 
ing a construction outlay of $2,463,748, stands first, while Texas, 
with rice farms excluded, stands second, having 2,022 farms with 
an irrigated area of 61,768 acres and systems costing $1,579,118. 



The true welfare of the nation is indissoluble hound up with the 
welf are of the farmer and the . wage-worker — of the man who tills 
the soil, and of the mechanic, the handicraftsman, the lahorer. If we 
can insure the prosperity of these two classes we need not trouble 
ourselves about the prosperity of the rest, for that -will follow as a 
matter of course. — "Vice-Presid^fct Roosevelt at opening of Pan- 
American Exposition, May 20, 1901. 

"We are now in a condition of prosperity unparalleled not 
merely in our own history, but in the history of any other nation. 
This prosperity is deep rooted and stands on a firm basis because 
it is due to the fact that the average American has in him the 
st ii IV out of -which victors are made in the great industrial con- 
tests of the present day, just as in the great military contests of 
the past, and because he is now able to use and develop his quali- 
ties to best advantage under our well-established, economic sys- 
tem. — President Roosevelt at Minneapolis, April 4, 1903. 

The prosperity of any of us can best be attained by measures 
that will promote the prosperity of all. — Vice-President Roosevelt at 
Buffalo, May 20, 1901. 




RURAL FREE DELIVERY. 165 



£URAL FREE DELIVERY 



^he Creation of Republican Congress and Executive — Democratic 
Officials, Including President Cleveland, Opposed it and Re- 
fused to establish it After Congress Had Appro- 
priated Money for That Purpose. 

Rural free delivery is the creation of the Republican party in 
Congress and in the Executive Departments. It was first proposed 
ky Postmaster-General Wanamaker during the Administration of 
President Harrison, was coldly received and discouraged by Presi- 
dent Cleveland and his executive officers, was revived and put 
into active operation under President McKinley and the Republican 
Congress elected with him, and has been encouraged and greatly 
.developed by President Roosevelt and the Congress and Executive 
Departments during his Administration. The history of its devel- 
opment, of the support which it received from Republicans and the 
opposition by Democrats is well told in the following extracts from 
debates in the House of Representatives. 

The Democratic Attitude Toward Rural Free Delivery. 

Hon. Charles F. Scott, of Kansas, in discussing the subject in 
December, 1903, said: 

The first reference which I find to this system appears in the 
report of the Hon. John Wanamaker, Postmaster-General during 
.he Harrison Administration. The recommendation which was 
wade by Postmaster-General Wanamaker, and to which I have just 
slluded, was followed up by the Administration and resulted in an 
appropriation for experiments in the direction suggested. These 
experiments in the first place were in the nature of extending free 
delivery to villages and small towns. At the close of the Harrison 
Administration the experiments which had been set on foot under 
the direction of Mr. Wanamaker were proceeding with great satis- 
faction to the country and to the people, and propositions had been 
made to extend these systems still further so as to reach out into 
the rural regions. 

That was the situation which prevailed when a Democratic Ad- 
ninistration, the second Cleveland Administration, came into power. 
Eeferring to this matter, the First Assistant Postmaster-General 
under that Administration made the following report. After hav- 
ing discussed in a discouraging way the entire system, he says: 

"It would require an appropriation of at least $20,000,000 to in- 
augurate a system of rural free delivery throughout the country." 

Following the recommendation of the First Assistant, the 
Postmaster-General, Bissell, incorporated the following in his an- 
nul report: 

'Although it was provided by Congress in the appropriation 
bill for the fiscal year ending June 30, 1894, that $10,000 should be 
deToted, at the discretion of the Postmaster-General, to testing 
th« feasibility of establishing a system of free delivery in rural 
districts, it has been found impossible, by reason of the pressure 
of more important questions, for the officers having that subject 
in charge to give tho matter the study and consideration that it 
demands, much less to establish such rural free delivery. It was 
S')on discovered, furthermore, that the appropriation for this ex- 
periment is not at all sufficient for thorough and reliable tests, for 
ir. order to give the rural free-delivery system a fair and thorough 
trial tests would have to be made in many localities differing nec- 
essarily in density of population, topography, class of interests, 
condition of highways and thoroughfares. To inaugurate a system 
of rural free delivery it would require an appropriation of at least 
$20,000,000." 

He then refers to the report of his First Assistant, and in- 
dorses the recommendation made there that the attempt be not 
riade. 

The next official reference which I find to this matter appears 
in the second report of William L. Wilson as Postmaster-General, 
in which he says, referring to the appropriation which had been 
raade in the preceding year and which he had not used: 

"Should Congress see fit to make it available for the current 
ysar I will make the experiment ordered, by the best tests I can 
devise, but the difficulties in the way of such experiments and the 
reasons for viewing the whole plan as impracticable are fully set 
forth in the report of the House committee on the postoffice appro- 
priation bill, second session of the Fifty-third Congress." 

It will be seen, therefore, that Mr. Cleveland's Postmaster- 
General after two years of study and reflection upon the subject, 
after having absolutely refused to use the money which Congress 
placed at his disposal for this purpose, gave it as his opinion that 
^the whole plan was impracticable and should be abandoned. 



166 RURAL FREE DELIVERY. 

The next official allusion to this matter to which I wish to call 
the attention of the House appears in the message of Presiden 
Cleveland to Congress, under date of December 4, 1893. Referrin 
to the matter of free rural delivery he says: 

"I am decidedly of the opinion that the provisions of the pres 
ent law permit as general an introduction of this future of mai 
service as is necessary or desirable, and that it oifght not to b< 
extended to smaller communities than are now designated." 

I next call attention to a single sentence from the annua 
message of the following year, by President Cleveland, in whic] 
he says: 

"The estimated cost of rural free delivery generally Is so veiv 
large that it ought not to be considered in the present condition 
of affairs." 

Thus dismissing it with a wave of the hand as an utterly im- 

ftracticable scheme by reason of the vast expense that would to 
nvolved. 

Tt appears, therefore, that a Democratic Postmaster-General 
the Democratic chairman of the Committee on the Post-Office and 
the Post-Roads, and a Democratic President all united in agreeing 
that the establishment of free rural delivery was an impracticable 
proposition. 



I 



Republican Attitude Toward Rural Free Delivery. 

Hon. J. H. Davidson, of Wisconsin, contrasting the attitude 
the Republican party with that of the Democrats on this subject 
said in the House of Representatives on April 20, 1904: , 

Under President McKinley's first Administration a number ol 
routes were established and a thorough test made. Since the! 
each annual report submitted by the head of the Post-Office Depart! 
ment has made special reference to this service, to its development 
and to the benefits accruing to the people through its establish- 
ment. 

Postmaster-General Gary, in his annual report, in speaking oi 
rural free delivery, used the following language: 

"It would be difficult to point to any like expenditure of public 
money which has been more generously appreciated by the people 
or which has conferred greater benefits in proportion to th< 
amount expended. In every instance the introduction of the serv- 
ice has resulted in an increase in the amount of mail matter 
handled. There is no doubt of the desire, wherever the systen 
has been tried, that it should be made permanent." 

Postmaster-General Smith, in referring to this service, said: 
"The benefits accruing from the extension Sf postal facilities t& 
the rural communities may be summarized as follows: Increased 
postal receipts, making many of the new deliveries almost immedi- 
ately self-supporting. Enhancement of the value of farm lanes 
reached by this service and better prices obtained for farm prod- 
ucts through more direct communication with the markets and 
prompter information of their state. Improved means of travel, 
some hundreds of miles of country roads, especially in the "Western 
States, having been graded specifically in order to obtain rural 
free delivery. Higher educational influences, broader circulatlot 
of the means of public intelligence, and closer daily contact witn 
the great world of activity extended to the homes of heretofore 
isolated rural communities." 

In 1900 the Postmaster-General spoke of rural free delivery 
as follows: 

"The extraordinary extension of rural free delivery during the 
past two years has proved to be the most salient, significant, snd 
far-reaching feature of postal development in recent times." 

In 1901 the Postmaster-General, in speaking of the serv.ee, 
said: 

"The policy of rural free delivery is no longer a subject of 
serious dispute. It has unmistakably vindicated itself by its 
fruits." 

"Rural-delivery service has become an established fact. It Is 
no longer in the experimental stage, and undoubtedly Congrejs 
will continue to increase the appropriation for this service unlll 
all the people of the country are reached where it is thickly 
enough settled to warrant it." 

In 1900 President McKinley in his message to Congress, in 
speaking of the postal service, used language as follows: 

"Its most striking new development is the extension of rural 
free delivery. * * * This service ameliorates the isolation of 
farm life, conduces to good roads, and quickens and extends the 
dissemination of general information. Experience thus far has 
tended to allay the apprehension that it would be so expensive as 
to forbid its general adoption or make it a serious burden. Its 
actual application has shown that it increases postal receipts and 
can be accompanied by reduction in other branches of the servicfe, 
so that the augmented revenues and accomplished saving together 
materially reduce the net cost." 

In his first message to Congress President Roosevelt said: 

"Among recent postal advances the success of rural free de- 
livery wherever established has been so marked and actual experi- 
ence has made its benefits so plain that the demand for its exten- 
sion is general and urgent. It is just that the great agricultural 
population should share in the improvement of this service." 

Again, in his last annual message, the President says: 

"The rural free-delivery service has been steadily extended. 
The attention of Congress is asked to the question of the compen- 



RURAL FREE DELIVERY. 167 

sation of the letter carriers and clerks engaged in the postal 
service, especially on the new rural free-delivery routes. More 
routes have been installed since the 1st of July last than in any 
like period in the Department's history. While a due regard to 
economy must be kept in mind in the establishment of new routes, 
yet the extension of the rural free-delivery system must be con- 
tinued for reasons of sound public policy. No governmental move- 
ment of recent years has resulted in greater immediate benefit to 
the people of the country districts. Rural free-delivery, taken In 
connection with the telephone, the bicycle, and the trolley, accom- 
plishes much toward lessening the isolation of farm life and mak- 
ing it brighter, and more attractive. In the immedate past the 
lack of just such facilities as these has driven many of the more 
active and restless young men and women from the farms to the 
cities, for they ^rebelled at loneliness and lack of mental com- 
panionship. It is unhealthy and undesirable for the cities to grow 
at the expense of the country; and rural free delivery is not only 
a good thing in itself, but is good because it is one of the causes 
which check this unwholesome tendency toward the urban con- 
centration of our population at the expense of the country dis- 
tricts." 

Appropriation of §20,000,000 for Rural Free Delivery 

The liberality of the Republican party in behalf of this very 
valuable service to the farmers is shown in the fact that the ap- 
propriation of the last session of Congress for rural free delivery 
was, in round terms, $20,000,000. As to its value to the farming 
community Representative Arthur L Bates, of Pennsylvania, said 
in the House of Representatives March 15, 1904: 

It is my belief that the $21,000,000 appropriated in this behalf 
brings more direct benefit to the inhabitants of this Republic whom 
it affects than almost any other appropriation made by the Gen- 
eral Government. 

Forty years ago everyone went or sent to the Post-Office for his 
mail, and the farmer in the busy season, when his horses and 
teams were working in the fields, could sometimes only receive 
mail for himself and family possibly once a week — on Saturday 
afternoon. Now it is not only delivered several times daily at 
the homes and places of business of the inhabitants of more than a 
thousand cities, but for the last six months of the fiscal year 
[January 1 to June 30, 1903) there were delivered by the carriers 
jf this service some 310,000,000 pieces of mail on rural routes 
throughout the United States to farmers and inhabitants of sparse- 
y settled regions. 

Increased facilities always bring increased use and enjoyment 
—more letters are written and received; more newspapers and 
nagazines are subscribed for. While it is not true in every part 
f the country, yet the official report shows that quite a number 
f rural routes already pay for themselves by the additional reve- 
lues they occasion. 

The testimony adduced from all over the country proves that 
>y reason of rural free delivery the actual value of our farm lands 
las been increased. Many farmers state that they would not dis- 
3ense with the service for $50 or even $100 per annum. It has 
jeen estimated that the value of farm lands has risen by this 
neans as high as $5 per acre in several States. A moderate bene- 
it to the farm lands of the whole country would be from $1 to $3 
>er acre. 

The producers, being brought into daily touch with the state 
<f the markets and in better communication with those who buy 
heir products, are able to obtain better prices for all that the 
irm produces. More definite knowledge of trade conditions is 
aways of great advantage. 

Good roads have been built and induced as an incentive for 
ural free-delivery establishment and to better encourage their 
naintenance. 

lion. Gilbert N. Haugen, of Iowa, said in the House April 
IS, 1904: 

The Post-Office bill contained no item of greater importance 
than the $20,180,000 for this service which is yet in its infancy. 
Four years ago not a single route was in operation in my district 
—very few in the United States — a service sidetracked, neglected, 
md abused under Democratic administration. After these seven 
>-ears of fostering, nourishing, and friendly encouragement by a 
Republican Administration it has grown from a $10,000 appropri- 
ition to over $20,000,000. During the last fiscal year 48,954,390 
nieces were collected and 390,428,128 pieces of mail were delivered 
sy Uncle Sam's 15,119 carriers; 8,339 routes were investigated, of 
vhich 6,653 were established and 1,714 were rejected. On June 30, 
903, there were 15,119 routes in operation, an average number 
<f 40 for each of the 386 Congressional districts. On that day there 
vere 11.700 petitions for routes awaiting investigation, and on 
ipril 1, 1904, there were 22,537 rural free-delivery routes in oper- 
ation, or an average of 59 for each Congressional district. 

With the liberal appropriation made for this service for the 
<oming year, before the next fiscal year ends we will have in oper- 
ation more than 30.000 routes, extending the service to the fire- 
sides of more than 3,000,000 homes. We hope in the near future to 
extend the service to every country home where it is practical 
and possible, a recognition justly due a deserving people, the bone 
and sinew of our great Republic. 

For figures on rural free delivery see chapter on work of the 
Post Office Department. 



168 TRUSTS AND INDUSTRIAL COMBINATIONS. 



TRUSTS AND INDUSTRIAL COMBINA- 
TIONS. 

Existing industrial conditions are the natural results of the 
splendid courage and energy of the American people. Compare 
the condition pi our country now with what it was when the 
Republican party first came into power. In that period of forty- 
four years we have learned how to produce and manufacture 
everything essential for civilized man; we have not only captured 
our home markets from the hands of Europe, but we have sent 
our products throughout the world; we have changed from a 
borrowing to a lending nation we have paid back the 2,140 mil- 
lions which the balance of trade showed against us in 1876, and 
the net balance of trade in our favor is now 3,584 millions; 
that balance is increasing at the rate of 400 millions per year; 
we have bound our country together with railroads, well termed 
the arteries of the nation's body through which the blood of 
commerce flows; we have increased our wealth five- fold; we 
have made it possible for labor to have a bigger wage and more 
just share of profits than obtains in any other nation. 

Great Economic Changes Have Occurred. 

In the doing of these things great economic changes have 
been necessary. Individual effort has given way to combined 
effort. The burden of enormous undertakings was too heavy for 
individuals; hence the formation of corporations, trade unions, 
all kinds of combinations of capital and labor. Throughout these 
changes inevitably hardships have been suffered, abuses have 
grown up, wrongs have been done. Primarily relief from such 
evils was sought from the State governments having jurisdic- 
tion thereof. 

State Regulation Inefficient. 

Laws' for the prevention, regulation, or suppression of trusts 
monopolies, or combinations in restraint of trade have been 
passed in 36 States and two Territories. This great mass of 
legislation is for the most part highly penal; its purpose was to 
correct an industrial wrong by the infliction of severe punish 
ments. Much of the legislation was as bad as the evils it was in- 
tended to destroy. It was enacted with honest intent, but in 
ignorance of real conditions. 

On the other hand, there have been passed in many States 
laws of a directly opposite character. Some States permit— yes 
encourage — the formation of corporations or combinations witl 
unlimited powers, subject to no restraint or regulation— thus pro 
viding the very machinery for industrial despotism. 

Hence the anomalous situation of a corporation chartered b} 
one State doing legally therein things which, if it dared to do in 
an adjoining State, would render its officers liable to imprison 
ment and fine. 

Both kinds of such extreme legislation are bad. On the one 
hand, the enforcement of a law which prohibits corporate enter- 
prise because of the gross abuse of power by a few men, de- 
stroys legitimate enterprise as well. On the other hand, the 
State which grants unlimited powers to corporations, free from 
restriction and continued regulation, creates an agency that may, 
by industrial supremacy, become a menace to free institutions 
As long as industries kept within State borders the National 
Government had no control over them. 

Mr. Roosevelt's Views as Expressed in 1900. 

The efforts to correct abuses and to enact laws for the pro 
tection of the public against dishonesty and imposition have no} 
been confined to either of the great political parties, but it is in- 
teresting to nofg that one of the ablest statements of the right 
rules of conduct for the investigation and correction of corporate 
anuses was made by President Roosevelt when he was governor 



TRUSTS AND INDUSTRIAL COMBINATIONS. 169 

of New. York. In his message to the New York Legislature on 
January 3, 1900, he said: 

"It is almost equally dangerous either to blink at evils and refuse 
to acknowledge their existence or to strike at them in a spirit of 
ignorant revenge, thereby doing far more harm than is remedied." 

° * * *.* * * * 

"It is possible, by acting with wisdom, coolness and fearless- 
ness, to apply a remedy which will wholly or in great part remove 
the evil while leaving the good behind. We do not wish to discour- 
age enterprise. We do not desire to destroy corporations; we do 
desire to put them fully at the service of the State and the people." 
* * * * * * * 

"What remains for us to do, as practical men, is to look the 
conditions squarely in the face and not to permit the emotional 
side of the question, which has its proper place, to blind us to the 
fact that there are other sides. We must set about finding out 
what the real abuses are, with their causes, and to what extent 

remedies can be applied." 

******* 

"To say that the present system of haphazard license and lack 
of supervision and regulation is the best possible is absurd. * * * 
The man who by swindling or wrong-doing acquires great wealth 
for himself at the expense of his fellow, stands as low mor- 
ally as any predatory mediaeval nobleman, and is a more dangerous 
member of society. Any law, and any method of construing the 
law which will enable the community to punish him, either by 
taking away his wealth or by imprisonment, should be welcomed. 
Of course, such laws are even more needed in dealing with great 
corporations or trusts than with individuals. They are needed 
quite as much for the sake of honest corporations as for the sake 
of the public. The corporation that manages its affairs honestly 
has a right to demand protection against the dishonest corpora- 
tion. We do not wish to put any burden on honest corporations. 
Neither do we wish to put any unnecessary burden of responsibility 
on enterprising men for acts which are immaterial; they should be 
relieved from such burdens, but held to a rigid financial accounta- 
bility for acts that mislead the upright investor or stockholder, or 
defraud the public. 

"The first essential is knowledge of the facts, publicity. Much 
can be done at once by amendment of the corporation laws so as 
to provide for such publicity as will not work injustice as between 
business rivals. 

"The chief abuses alleged to arise from trusts are probably the 
following: Misrepresentation or concealment regarding material 
facts connected with the organization of an enterprise; the evils 
connected with Unscrupulous promotion; overcapitalization; unfair 
competition, resulting in the crushing out of competitors who 
themselves do not act improperly; raising of prices above fair com- 
petitive rates; the wielding 'of increased power over the wage- 
earners. * * * We should know authoritatively whether stock 
represents actual value of plants, or whether it represents brands 
or good will; or if not, what it does represent, if anything. It is 
desirable to know how much was actually bought, how much was 
issued free, and to whom; and, if possible, for what reason. * * * 
In the next place this would enable us to see just what the public 
have a right to expect in the way of service and taxation." 

******* 

"Where a trust becomes a monopoly the State has an immediate 
right to interfere. Care should be taken not to stifle enterprise 
or disclose any facts of a business that are essentially private; 
but the State for the protection of the public should exercise the 
right to inspect, to examine thoroughly all the workings of great 
corporations^ just as' is now done with banks, and wherever the in- 
terests of the public demand it it should publish the results of its 
examination. * * * The first requisite is knowledge, full and 
complete." 

Became a National Question. 

However, this question could not remain a State one. Indus- 
try overleaped State boundaries; it became interstate and for- 
eign commerce, and hence under the direct control of the Na- 
tional Government 

The States found themselves helpless to regulate or control 
agencies of interstate commerce. Under the Republican adminis- 
tration of Harrison, in 1890, a Republican Congress took definite 
| action to provide a remedy for some of the trust difficulties by 
j enacting the Sherman Anti-Trust Law— "An Act to protect trade 
I and commerce against unlawful restraints and mononopolies." 
Frosecutions under the act were attempted, but prior to the ad- 
ministration of President McKinley little of real value had been 
accomplished. 

What Has Been Done Since 1900. 

I Mr. Root, in his speech at the Republican Convention on 
June 21, 1904, well stated the situation as follows: 

"Four years ago the regulation by law of the great corporate 
t combinations called 'trusts' stood substantially where it. was when 
j the Sherman anti-trust act of 1890 was passed. 



170 IKIMS AM> 1MHSTKIAI. COM HINATIONS. 

"At every election the regulation of trusts had been the foot-/ 
ball of campaign oratory and the subject of many insincere declaJ 
rations. 

"Our Republican Administration has taken up the subject In 
a practical, sensible way as a business rather than a political ques- 
ton, saying what it really meant, and doing what lay at its nand 
to be done to accomplish effective regulation. The principles upon 
which the government proceeded were stated by the President in 
his message of December, 1902. 

"After long consideration, Congress passed three practical 
statutes — on the 11th of February, 1903, an act to expedite hear- 
ings in suits in enforcement of the anti-trust act; on the 14th of 
February, 1903, the act creating a new Department of Commerce 
and Labor, with a Bureau of Corporations, having authority to 
secure systematic information regarding the organization and op- 
eration of corporations engaged in interstate commerce, and on 
the 19th of February, 1903, an act enlarging the powers of the 
Interstate Commerce Commission and of the courts, to deal with 
secret rebates in transportation chars.es, which are the chief 
means by which the trusts crush out their smaller competitors. 

"The Attorney General has gone on in the same practical way, 
not to talk about the trusts, but to proceed against the trusts by 
law for their regulation. In separate suits fourteen of the great 
railroads of the country have been restrained by injunction from 
giving illegal rebates to the favored shippers, who, by means of 
them, were driving out the smaller shippers and monopolizing the 
grain and meat business of the country. The beef trust was put 
under injunction. The officers of the railroads engaged in the 
cotton-carrying pool, affecting all that great industry of the South, 
were indicted and have abandoned their combination. The North- 
ern Securities Company, which undertook by combining in one 
ownership the capital stocks of the Northern Pacific and Great 
Northern railroads to end traffic competition in the Northwest, 
has been destroyed by a vigorous prosecution, expedited and 
brought to a speedy and effective conclusion in the Supreme Court 
under the act of February 11, 1903. 

"The right of* the Interstate Commerce Commission to compel 
the production of books and papers has been established by the 
judgment of the Supreme Court in a suit against the coal-carrying 
roads. Other suits have been brought and other indictments' have 
been found, and other trusts have been driven back within legal 
bounds. No investment in lawful business has been jeopardized; 
no fair and honest enterprise has been injured; but it is certain 
that wherever the constitutional power of the National Govern- 
ment reaches, trusts are being practically regulated and curbed 
within lawful bounds, as they never have been before, and the men 
of small capital are finding in the efficiency and' skill of the na- 
tional Department of Justice a protection they never had before 
against the crushing effect of unlawful combinations." 

Under President Roosevelt's administration there has been no 
frittering away of chances to enforce the laws because -of fine- 
spun definitions of trusts. Attorney General Knox said at Pitts- 
burg, October 14, 1902: 

"The people, by common consent, have denominated the great 
industrial and other corporations, now controlling many branches 
of commercial business, trusts. The technical accuracy of the 
term is unimportant, but, indeed, it is much more apt than might 
be supposed, when it is recalled that the essential difference be- 
tween the old industrial trusts and the great corporations owning 
and controlling subsidiary ones is that in respect to the former the 
shares of independent corporations agreeing to act .in harmony 
were lodged with a trustee who received the separate earnings 
and distributed them among the holders of trust certificates, while 
as to the latter a corporation is created to take over the title to 
the stock or properties of the constituent companies and issue 
its own shares as the evidence of interest in the combination. 
The corporation owner of corporations invokes specific legal au- 
thority from the legislature of the State under which it is created. 

"The President, in his first message to Congress, said: 

" 'There is a widespread, settled conviction in the minds of the 
American people that these trusts are, in many of their features 
and tendencies, hurtful to the general welfare. This springs from 
no spirit of envy or uncharitableness, nor lack of pride in the great 
industrial achievements that have placed the country at the head 
of the nations struggling for commercial supremacy. It does not 
rest upon a lack of intelligent appreciation of the necessity of 
meeting changing and changed conditions of trade with new meth- 
ods, nor upon ignorance of the fact that combination of capital and 
effort to accomplish great things is necessary when the world's 
progress is demanding that great things be done. It is bottomed 
upon sincere conviction that combination and concentration, while 
not to be prohibited, are to be controlled, and in my judgment this 
conviction is right.' 

"These great combinations, now numbering thousands, are the 
instrumentalities of modern commercial activity. Their number 
and size alone appall no healthy American. We are accustomed to 
large things and to do them in a large way. We are accustomed to 
speak with a justifiable pride of our great institutions and what 
we have fairly accomplished through them. No right-thinking 
man desires to impair the efficiency of the great corporations as 
instrumentalities of national commercial development. Because 
they are great and prosperous is no sufficient reason for their de- 



TRUSTS AND INDUSTRIAL COMBINATIONS. 171 

struction. Tf that greatness and prosperity are not the result of 
the defiance of the natural rights or recorded will of the people, 
there is no just cause of complaint. 

"That there are evils and abuses in trust promotions, purposes, 
organizations, methods, management, and effects none questions 
except those who have profited by those evils. That all or any of 
these abuses are to be found in every large organization called a 
trust no one would assert who valued his reputation for sane judg- 
ment. 

"The conspicuous noxious features of trusts existent and pos- 

1 sible are these: Overcapitalization, lack of publicity of operation, 
discrimination in prices to destroy competition, insufficient per- 

| sonal responsibility of officers and directors for corporate manage- 
ment, tendency to monopoly, and lack of appreciation in their man- 
agement of their relations to the people for whose benefit they are 
permitted to exist." 

President Roosevelt's Words on This Subject. 

The following utterances of President Roosevelt on this sub- 
ject are clear-cut, honest, and practical expressions of the atti- 
tude of the Republican party: 

"The first essential in determining how to deal with the great 

industrial combinations is knowledge of the facts — publicity. In 

the interest of the public the Government should have the right 

. to inspect and examine the workings of the great corporations 

engaged in interstate business. 

"The average man, however, when he speaks of the trusts, 

means rather vaguely all of the very big corporations, the growth 

of which has been so signal a feature of our modern civilization, 

and especially those big corporations which, though organized in 

, one S'tate, do business in several States, and often have a tendency 

; to monopoly. 

"In dealing with the big corporations which we call trusts, 
we must resolutely purpose to proceed by evolution and not 
revolution. * * * The surest way to prevent the possibility of 
curing any of them is to approach the subject in a spirit of violent 
rancor, complicated with total ignorance of business interests and 
fundamental incapacity or unwillingness to understand the limita- 
tions upon all law-making bodies. No problem, and least of all 
so difficult a problem as this, can be solved if the qualities brought 
to its solution are panic, fear, envy, hatred, and ignorance. * * * 
Corporations that are handled honestly and fairly, so far from 
being an evil, are a natural business evolution and make for the 
general prosperity of our land. We do not wish to destroy corpo- 
rations, but we do wish to make them subserve the public good. All 
individuals, rich or poor, private or corporate, must be subject to 
the law of the land; and the Government will hold them to a rigid 
obedience thereof. The biggest corporation, like the humblest 
private citizen, must be held to strict compliance with the will of 
the people as expressed in the fundamental law. The rich man 
who does not see that this is in his interest is indeed short-sight- 
ed. When we make him obey the law we insure for him the 
absolute protection of the law. 

"I think I speak for the great majority of the American people 
when I say that we are not in the least against wealth as such, 
whether individual or corporate; that we merely desire to see any 
abuse of corporate or combined wealth corrected and remedied. 
* * * There is no proper place in our society either for the rich 
man who uses the power conferred by his riches to enable him 
to oppress and wrong his neighbors, nor yet for the demagogic 
agitator. 

"The necessary supervision and control, in which I firmly be- 
lieve as the only method of eliminating the real evils of the trusts, 
must come through wisely and cautiously framed legislation, 
which shall aim in the first place to give definite control to some 
sovereign over the great corporations, and which shall be followed, 
when once this power has been conferred, by a system giving to 
the Government the full knowledge which is the essential for satis- 
factory action. Then, when this knowledge — one of the essential 
features of which is proper publicity — has been gained, what fur- 
ther steps of any kind are necessary can be taken with the confi- 
dence born of the possession of power to deal with the subject, 
and of a thorough knowledge of what should and can be done in 
the matter. 

"In the interest of the whole people the nation should, without 
interfering with the power of the States in the matter, itself also 
assume power of supervision and regulation over all corporations 
doing an interstate business. ♦ 

"We are no more against organizations of capital than against 
organizations of labor. We welcome both, demanding only that 
each shall do right and shall remember its' duty to the Republic. 
Such a course we consider not merely a benefit to the poor man, 
but a benefit to the rich man." 

However, the Republican party and its leaders have not lim- 
ited their dealings with this question to mere words, nor futile 
paper attacks upon offending corporations. Passive virtue is 
often as dangerous as active vice. This administration has taken 
vigorous action to make good its promises and carry out its 
policies. 



172 TRUSTS AND INDUSTRIAL COMBINATIONS. 

Work of the Department of Justice in the Enforcement of Antl- 
Truat Lavra. 

In no branch of tho litigation for the Government has greater] 
success been achieved than in the enforcement of the Sherman 
Anti-Trust law. The importance of the suits brought, the gravity 
of the -questions involved, and the success attained render spe- 
cial mention appropriate. 

Two great difficulties encountered in ,the past in the enforce 
ment of the Sherman law were the lack of power to compel the 
giving of testimony and the production of documentary evidence 
in the form of books and paper— the evidences of violation of 
the law; and also the delays in pushing prosecutions to a speedy 
conclusion, which could be availed of by those against whom 
punishment was directed. 

It thus being apparent that the law needed amendment to 
make it more effective, the Judiciary Committees of Congress, 
in December, 1902, called upon Attorney General Knox for an 
expression of his views as to the amendments which should be 
made to the law. In response thereto the Attorney-General made 
several recommendations. Among others, these: 

(1) That the Interstate Commerce law should be so amended 
as to make the penalties prescribed for the granting of rebates, 
concessions, and discriminations apply to all carriers, whether an 
incorporated company or not, and to subject the recipient of the 
rebates, concessions, or discriminations to the same punishment 
as might be imposed upon the giver of them; that an act 
done or omitted to be done by an officer, agent, or employee of 
a carrier, which subjected such person to a penalty, should also 
be held to be the act of the carrier corporation and to subject the 
corporation to the same penalty as that imposed upon its officer, 
agent, or employee; to specifically confer upon the courts the au- 
thority to enjoin the granting or the receiving of rebates or con- 
cessions; and to make it ^unlawful for the common carrier to 
transport traffic for less than its published rate, and to subject, 
to heavy penalties all who participate in such a transaction. 

(2) That a Commission be created, with the power and duty, 
among other things, to make diligent and thorough investigation 
into the operations and conduct of all corporations, combinations 
and concerns engaged in interstate and foreign commerce; vest- 
ing in the Commission the authority, in making investigations, to 
compel the giving of testimony, the production of books and 
papers, and the making of such reports upon such matters as the 
Commission may desire information; and to gather such data and 
information as will enable it to make specific recommendation 
for additional legislation for the regulation of such commerce. 

(3) That an act be passed to expedite the hearing and determi- 
nation of cases under the Anti-Trust and the Interstate Commerce 
acts, by providing that whenever the Attorney-General shall file 
in any court in which a case under such laws is pending a certifi- 
cate that the case involves important questions and the public 
interests demand a speedy hearing, it shall thereupon be the 
duty of the court, a full bench sitting, to proceed with the hear- 
ing and determination of the case at as early a date as is practi- 
cable; and that from a decision of the trial court an appeal may 
only be taken direct to the Supreme Court and that within a 
very limited time. 

In response to these suggestions, Congress promptly enacted 
the following legislation: 

(1) On February 11, 1903 (32 Stat, 823), an act to expedite 
the hearing and determination of suits under the Anti-Trust and 
the Interstate Commerce Acts. The act provides that whenever 
the Attorney-General shall file with the clerk of the court in 
which such a suit is pending a certificate that the case is of pub- 
lic importance, it shall thereupon be the duty of the court, not 
less than three of the judges sitting, to proceed to hear and de- 
termine the case at the earliest practicable day. An appeal from 
the decision of the trial court will lie only to the Supreme Court 
and must be taken within sixty days from the* entry of the final 
decree. 

(2) On February 14, 1903 (32 Stat, 825, 827), by section 6 of 
the act creating the Department of Commerce and Labor, there 



TRUSTS AND INDUSTRIAL COMBINATIONS. 173 

was created a bureau called the "Bureau of Corporations," at 
the head of which was placed a Commissioner. Authority and 
power was vested in the Commissioner to make diligent investi- 
gation into the organization, conduct, and management of the 
business of all corporations, joint stock companies, and corporate 
combinations engaged in interstate or foreign commerce (except- 
ing common carriers subject to the Interstate Commerce Law), 
and to gather such information and data as will enable the Presi- 
dent to make recommendations to Congress for additional legisla- 
tion; and to compel the giving of testimony, and the production 
of such books and papers, and the making of such reports as 
may be necessary for the purposes of the investigation. 

(3) On February 19, 1903, Congress passed what is commonly 
known as the "Elkins Law" (32 Stat, 847), which amended the 
Interstate Commerce Law in several important particulars. 

That act provides that anything done or omitted to be done 
by a corporation common carrier, subject to the act, which, if 
done by an officer, agent, or employee thereof would constitute a 
misdemeanor under the law, shall also be held to be a misde- 
meanor committed by such corporation, and subjects the corpor- 
ation to like penalties; 

Requires every common carrier subject to the law to publish 
its tariff rates or charges and to maintain them; and for a failure 
to do so subjects the corporation to a fine of from $1,000 to 
$20,000 for each offense; 

, Declares it to be unlawful for any person or corporation to 
offer, grant, or give, or to solicit, accept, or receive any rebate, 
concession, or discrimination in respect of the transportation of 
any property in interstate or foreign commerce, whereby such 
property shall by any device whatever be transported at a less 
rate than that named in the tariffs published by the carrier, and 
for a violation of this provision subjects the person and the cor- 
poration to a fine of from $1,000 to $20,000; 

Makes the rate published and filed with the Interstate Com- 
merce Commission the legal rate, and every departure from it is 
to be deemed an offense under the act; 

Expressly declares that ai prosecution instituted by the Gov- 
ernment under this act shall not exempt the offending carrier 
from suits to recover damages by any party injured, as provided 
in the former acts; 

Requires the production, in any proceeding, of all books and 
papers, both by the carrier and the shipper, which directly or 
indirectly relate to the transaction charged against the carrier, 
and the giving of testimony, whether such books, papers, or testi- 
mony may tend to criminate the party or not; but exempts the 
party so compelled to testify, or to produce any books or papers, 
from any prosecution or penalty on account of any transaction, 
matter, or thing concerning which he may be compelled to tes- 
tify or produce evidence; 

And authorizes the expediting and hearing of any suit brought 
thereunder, as provided in the act of February 11, 1903 (32 Stat, 
823), for the hearing and determination of sutts under the Anti- 
Trust law. 

(4) On February 25, 1903 (32 Stat, 854, 903), appropriated 
$500,000 for the purpose of enforcing the provisions of the Anti- 
Trust law, and vested in the Attorney-General the authority to 
employ special counsel and agents of the Department of Justice 
to conduct proceedings, suits, and prosecutions under that act; 
and exempts from prosecution or penalty any person compelled to 
testify, or to produce evidence, in any suit or proceeding under 
that law. 

(5) The act of March 3, 1903 (32 Stat, 1031, 1062), provides 
for the appointment of a Special Assistant to the Attorney-Gen- 
eral, and as Assistant Attorney-General, to assist in the enforce- 
ment of the Anti-Trust law, and to perform such duties as may 
be required of them by the Attorney-General. 

Clothed with the authority conferred by this new legislation, 
the Department of Justice, in connection with the Interstate 
Commerce Commission and the Bureau of. Corporations, has 
taken up the work of making a thorough investigation into the 
formation, conduct, and operations or corporate combinations en- 



174 XBU8TS AM) INDISTUIAI, COMBINATIONS. 

gaged in Interstate and foreign commerce, and upon the comple- 
tion of these Investigations, the Department will be in a position 
the more effectually and successfully to prosecute violations of 
the Ami-Trust and interstate Commerce laws. The suits under 
the latter laws arc referred to under their appropriate heading 
hereafter. 

The following are the more important Anti-Trust cases pend- 
ing at the beginning of President Mckinley's Administration and 
successfully prosecuted, and those begun and successfully prose- 
cuted under the administrations of President McKinley and 
President Roosevelt: 

United States v. Joint Traffic Association, 171 U. S. f 505 (de- 
cided October 24, 1898). 

In this case the Supreme Court held illegal what is known 
as the JoinfTraffic Agreement, an agreement entered into by 31 
different railroads operating in the territory between Chicago and 
the Atlantic Coast, for the purpose of fixing and maintaining 
rates and fares. The court held: 

That Congress has the power to prohibit, as in restraint of 
interstate commerce, a contract or combination between compet- 
ing railorad companies to establish and maintain interstate rates 
and fares for the transportation of freight and' passengers on any 
of the railroads parties to the combination, even though the rates 
and fares thus established are reasonable; 

That Congress has the power to forbid any agreement or com- 
bination among or between competing railroad companies for 
interstate commerce by means of which competition is pre- 
vented; and 

That the Sherman Anti-Trust law is a legitimate exercise of 
the power of Congress over interstate commerce, and a valid 
regulation thereof. 

United States v. Addyston Pipe & Steel Co., (decided Decem- 
ber 4, 1899; 175, U. S., 211). 

In this case six corporations, located in different States and 
engaged in the manufacture of cast-iron pipe, had entered into 
an agreement to control the sale of cast-iron pipe in 36 States 
and Territories, by fixing the price of sale, dividing up the terri- 
tory between them, and by refusing to bid against each other. 
The court in declaring the combination to be illegal, held: 

That the power to regulate interstate commerce, and to pre- 
scribe the rules by which it shall be governed, is vested in Con- 
gress and that any agreement or combination which directly 
operates, not alone upon the manufacture, but upon the sale, 
transportation and delivery of an article of interstate commerce, 
by preventing or restricting its sale, thereby regulates interstate 
commerce to that extent, and thus violates the Anti-Trust law; 

That the Sherman law applies to combinations of individuals 
and private corporations as well as to combinations of railways ; 
and that Congress has authority to declare void and to prohibit 
the performance of any contract between individuals or corpo- 
rations where the natural and direct effect of such a contract 
shall be, when carried out, to directly regulate to any extent in- 
terstate or foreign commerce. 

United States v. Northern Securities Co. et. al., 183 U. S., 
198 (decided March 14, 1904). 

This suit was brought in the circuit court of the United 
States for the district of Minnesota, in March, 1902, against the 
Northern Securities Company, the Great Northern Railway Com- 
pany, and the Northern Pacific Railway Company, to restrain the 
Securities Company from in any manner acting as the owner, or 
from voting any of the shares of the capital stock of the two 
railway companies; and to enjoin the two railway companies 
from permitting the Securities Company to vote any of the 
scares of the capital stock of the two roads, or from exercising 
any control whatsoever of the two railways. 

The Securities Company was formed by the officers of these 
two railway companies for the purpose of acquiring a control- 
ling interest in the capital stock of the two roads, which it did 
by exchanging its stock for the stock of the two railways. Just 
prior to the formation of the Securities Company the Great 
Northern and the Northern Pacific Railway Companies had joint- 



TRUSTS AND INDUSTRIAL COMBINATIONS. 175 

ly acquired a controlling interest in the stock of the Chicago, 
Burlington & Quincy Railroad Company. For this stock the two 
railroad companies issued their joint bonds, pledging the capital 
stock so purchased as collateral for the payment of the purchase 
bonds. In this manner the two railway companies secured joint 
control of the Burlington system. 

In securing a controlling interest in the stocks of the Great 
Northern ana Northern Pacific systems the Securities Company 
not only secured the control of those two systems but also of 
the Burlington system controlled by them, which enabled it to 
dictate the policy of all three railway systems, and to prevent 
all competition between them. By these means, it was entirely 
within the power of the Securities Company to absolutely con- 
trol all three systems of railway and to suppress all competition 
between these hitherto competing lines of railway in all of the 
States through which they ran, lying north of the line of the 
Union Pacific Railway and between the Great Lakes and the 
Pacific Ocean. 

Upon full hearing the circuit court held the combination to 
be illegal and restrained all acts under it. On appeal, the Su- 
preme Court affirmed the decree of the circuit court and, among 
other things, held: 

That the principal, if not the sole object of creating the 
Securities Company, was to secure and to hold a controlling in- 
terest in the stock of both railway companies and thus prevent 
all competition between them; and that such an arrangement w r as 
an illegal combination in restraint of interstate commerce and a 
violation of the Sherman Anti-Trust law; 

That every combination or conspiracy which would extin- 
guish competition between otherwise competing railroads, en- 
gaged in interstate trade or commerce, and which would in that 
way restrain such trade or commerce, is made illegal by that 
act; 

That Congress has the power to establish rules by which in- 
terstate commerce shall be governed, and by the Anti-Trust act 
has prescribed the rule of free competition among those engaged 
in such commerce; and 

That it need not be shown that such a combination, in fact, 
results, or will result to suppress or restrain such commerce, but 
it is only essential to show that the combination possesses the 
power to do so, if it wishes to exercise it. 

United States v. Chesapeake & Ohio Fuel Co. et al, 105 Fed. 
Rep., 93. 

In this case the U. S. circuit court for the southern district 
of Ohio, in the suit brought in May, 1899, for that purpose, re- 
strained the carrying out of an agreement between 14 coal com- 
panies engaged in mining coal and making coke in West Virginia 
and a fuel company— whereby the latier company was to take 
the entire product of the mining companies intended for ship- 
ment to the Western States; to sell the same at not less than a 
minimum price to be fixed by a committee of the mining com- 
panies; to account for and to pay over to them the entire pro- 
ceeds above a fixed pric# each company receiving payment at 
the same rate, and the fuel company binding itself not to sell 
the product of a competing company— as being in violation of the 
Anti-Trust law, the combination being in restraint of interstate 
trade and commerce and as tending to monopoly. The court held 
that— 

It is the declared policy of Congress to promote individual 
competition in relation to interstate commerce, and to prevent 
combinations which restrain such competition between their 
members; and that it is no defense to an action to dissolve such 
a combination under the Anti-Trust law r that it has not in fact 
been productive of injury to the public if it possesses the power 
to injure if it wishes to exercise it. 

Upon appeal by the combination the circuit court of appeals 
for the sixth circuit affirmed the decree of the lower court, from 
which decree of affirmance no appeal was taken (115 Fed. 
Rep., 610). 

United States v. Swift & Co. et al, 122 Fed. Rep., 529. 

This suit, instituted in May, 1902, commonly called the "Beef 



176 TRUSTS AMI INIU'STKIAL COM HI N A TIONS. 

Treat" suit, was brought in the U. S. circuit court, for the north- 
ern district of Illinois to restrain the operations of the "Beef 
Trust," a combination composed of the principal buyers of live 
stock and shippers of dressed meats in the United States. The 
object of the combination was to restrain competition among 
themselves in the buying of live stock and in the sale of dressed 
meats. The court held — 

That the agreement of the defendants to refrain from bid- 
ding against each other in the purchase of live stock; to bid up 
prices for a short time to induce large shipments and 
then to reduce the price and cease competitive bidding when 
the shipments arrived; and the agreement to fix and maintain 
uniform prices for dressed meats, wasl in restraint of trade and 
violated the Sherman law; 

That the Sherman law has no concern with prices, but looks 
solely to competition and to the giving of competition full play 
by making illegal any effort at restriction upon commerce. 

The court therefore granted the injunction prayed for by the 
Government From this action the Beef Trust has taken an ap- 
peal to the Supreme Court. 

United States v. The Federal Salt Company, et al. 

The combination involved in this case (brought in October, 
1902)" was known as the "Salt Trust," and was formed for the 
purpose of raising and maintaining the price of salt in the States 
west of the Rocky mountains. The circuit court of the United 
States for the northern district of California enjoined the com- 
bination from acting under its agreement in restraint of trade 
and commerce, and the combination was dissolved. The grand 
jury (in February, 1903) also returned an indictment against 
the trust* to which it pleaded guilty, and was sentenced to pay 
a fine, which was paid. 

Fiirther "Work Begrun by the Department of Commerce and Labor. 

This record of things well done justifies the Republican party 
in asking the people to leave the further solution of industrial 
problems in its hands, but it is not content with simply point- 
ing to the past; it is working in the present preparing for the 
future. The creation of the Bureau of Corporations in the De- 
partment of Commerce and Labor marks the change from the 
old to the new way of dealing with the trusts. The chief dif- 
ficulty has been lack of accurate knowledge regarding existing 
conditions. The purpose of the Bureau is to get all essential 
facts about the business of interstate and foreign commerce, 
and the agencies engaged therein. It has broad powers of in- 
quiry. The facts it obtains, reported to Congress through the 
President, will afford a sound basis for wise and progressive 
constructive legislation. 

The work of the Bureau thus far has been a systematic study 
of legal and industrial conditions in all the States and special 
investigations into particular industries. These investigations 
have been conducted vigorously, but not with a spirit of hostility 
to all the industries because of the misdeeds of some. The great 
powers given the Bureau would be justly condemned by the 
people if used for partisan attack upon special corporations, or 
the exploitation of the operations of business enterprises for the 
sake of temporary political advantage. 

The result of the year's work is most gratifying. The people 
at large have confidence that Congress will get the information 
it needs, business men see that legitimate enterprise need not 
fear unjust attack nor improper inquisitorial investigation. 

The Bureau is not charged with the enforcement of any penal 
statute. Those Democratic leaders who charge it wit. failure 
to suppress a corporation alleged to be violating a law either will- 
fully misrepresent facts, or are wofully ignorant of the organic 
statute. The clamor of Democracy for an indiscriminate assault 
upon corporations will not drive this Administration from its 
Steadfast, though undramatic, work of discovering facts upon 
which it can recommend a practical change of laws which wiU 
improve, not destroy, our industries 



TRUSTS AND INDUSTRIAL COMBINATIONS. 177 

The Northern Securities Decision and the Power of Congress to 
Deal with Trusts. 

The Supreme Court in the Northern Securities case has 
cleared away many of the popular doubts about the power of 
Congress to deal with interstate commerce, as shown by the fol- 
lowing extracts from the opinion: 

It is sufficient to say that from the decisions in the above cases 
certain propositions are plainly deducible and embrace the present 
case. Those propositions are — 

That although the act of Congress known as the Anti-Trust 
act has no reference to the mere manufacture or production of 
articles or commodites within the limits of the several States, it 
does embrace and declare to be illegal every contract, combination, 
or conspiracy, in whatever form, of whatever nature, and whoever 
may be parties to it, which directly or necessarily operates in 
restraint of trade or commerce among the several States or with 
foreign nations; 

That the act is not limited to restraints of interstate and inter- 
national trade or commerce that are unreasonable in their nature, 
but embraces all direct restraints imposed by any combination, 
conspiracy, or monopoly upon such trade or commerce; 

That railroad carriers engaged in interstate or international 
trade or commerce are embraced by the act; 

That combinations even among private manufacturers or deal- 
ers whereby interstate or international commerce is restrained are 
equally embraced by the act; 

That Congress has the power to establish rules by which in- 
terstate and international commerce shall be governed, and, by 
the Anti-Trust act, has prescribed the rule of free competition 
among those engaged in such commerce; 

That every combination or conspiracy which would extinguish 
competition between otherwise competing railroads engaged in 
interstate trade or commerce, and which would in that way re- 
strain such trade or commerce, is made illegal by the act; 

That the natural effect of competition is to increase commerce 
and an agreement whose direct effect is to prevent this play of 
competition restrains instead of promoting trade and commerce; 

That to vitiate a combination, such as the act of Congress con- 
demns, it need not be shown that the combination, in fact, results 
or will result in a total suppression of trade or in a complete 
monopoly, but it is only essential to show that by its necessary 
operation it tends to restrain interstate or international trade or 
commerce or tends to create a monopoly in such trade or commerce 
and to deprive the public of the advantages that flow from free 
competition; 

That the constitutional guaranty of liberty of contract does 
not prevent Congress from prescribing the rule of free competition 
for those engaged in interstate and international commerce; and, 

That under its power to regulate commerce among the several 
States and with foreign nations Congress had authority to enact 
the statute in question. 

No one, we assume, will deny that these propositions were dis- 
tinctly announced in the former decisions of this court. They 
cannot be ignored or their effect avoided by the intimation that 
the court indulged in obiter dicta. 

By the express words of the Constitution, Congress has power 
to "regulate commerce with foreign nations and among the several 
States, and with the Indian tribes." In view of the numerous de- 
cisions of this court there ought not, at this day, to be any doubt 
as to the general scope of such power. In some circumstances 
regulation may properly take the form and have the effect of pro- 
hibition. (In re Rahrer, 140 U. S., 545; Lottery Case, 188 U. S'., 321, 
355, and authorities there cited.) Again and again this court has 
reaffirmed the doctrine announced in the great judgment rendered 
by Chief Justice Marshall for the court in Gibbons vs. Ogden (9 
Wheat., 1, 196, 197), that the power of Congress to regulate com- 
merce among the States and with foreign nations is the power "to 
prescribe the rule by which commerce is to be governed;" that 
such power "is complete in itself, may be exercised to its 
utmost extent, and acknowledges no limitations other than 
are prescribed in the Constitution;" that "if, as has already 
been understood, the sovereignty of Congress, though limited 
to specified objects, is plenary as to those objects, the 
power over commerce with foreign nations and among the several 
States, is vested in Congress as absolutely as it would be in a sin- 
gle government having in its constitution the same restrictions 
on the exercise of the power as are found in the Constitution of the 
United States;" that a sound construction of the Constitution al- 
lows to Congress a large discretion, "with respect to the means 
by which the powers it confers are to be carried into execution 
which enable that body to perform the high duties assigned to it, 
in the manner most beneficial to the people;" and that if the end 
to be accomplished is within the scope of the Constitution, "all 
means which are appropriate, which are plainly adapted to that 
end and which are not prohibited, are constitutional." (Brown v. 
Maryland, 12 Wheat., 419; Sinnot v. Davenport, 22 How., 227, 238* 
Henderson v. The Mayor, 92 TJ. S., 259; Railroad v. Husen, 95 U. S., 
465. 472; Mobile v. Kimball, 102 U. R, 691; M., K. & Texas Ry. Co. v. 
Haber, 169 U. S., 613, 626; The Lottery Case, 188 U. S., 321, 348.) 
In Cohens v. Virginia (6 Wheat., 264, 413), this court said that the 
United States were for many important purposes "a single nation," 



178 TRUSTS AND INDUSTRIAL COMBINATIONS. 

and that "in all commercial regulations we are one and the same 
people;" and it has since frequently declared that commerce among 
the several States was a unit, and subject to national control. 
Previously, in McCulloch v. Maryland (4 Wheat., 316, 405), the 
court said that the Government ordained and established by the 
Constitution was, within the limits of the powers granted to it, 
"the Government of all; its powers are delegated by all; it rep- 
resents all, and acts for all," and was "supreme within its sphere 
of action." As late as the case of In re Debs (158 U. S., 564, 582), 
this court, every member of it concurring, said: "The entire 
strength of the nation may be used to enforce in any part of the 
land the full and free exercise of all national powers and the se- 
curity of all rights intrusted by the Constitution to its care. The 
strong arm of the National Government may be put forth to brush 
away all obstructions to the freedom of interstate commerce or 
the transportation of the mails. If the emergency arises, the army 
of the nation, and all its militia, are at the service of the nation 
to compel obedience to its laws." 

They serve also to give point to the declaration of this court 
in Gibbons v. Ogden (9 Wheat., 194) — a principle never modified oy 
any subsequent decision — that, subject to the limitations imposed 
by the Constitution upon the exercise of the powers granted by 
that instrument, "the power over commerce with foreign nations 
and among the several States is vested in Congress as absolutely 
as it would be in a single government having in its constitution 
the same restrictions on the exercise of power as are found in the 
Constitution of the United States." Is there, then, any escape 
from the conclusion that, subject only to such restrictions, the 
power of Congress over interstate and international commerce is 
as full and complete as is the power of any State over its domes- 
tic commerce? If a State may strike down combinations that re- 
strain its domestic commerce by destroying free competition among 
those engaged in such commerce, what power, except that of Con- 
gress, is competent to protect the freedom of interstate and inter- 
national commerce when assailed by a combination that restrains 
such commerce by stifling competition among those engaged in it? 

We reject any such view of the relations of the National Gov- 
ernment and the States composing the Union, as that for which the 
defendants contend. Such a view cannot be maintained without 
destroying the just authority of the United States. It is inconsis- 
tent with all the decisions of this court as to the powers of the 
National Government over matters committed to it. No State can, 
by merely creating a corporation, or in any other mode, project its 
authority into other States, and across the continent, so as to pre- 
vent Congress from exerting the power it possesses under the 
Constitution over interstate and international commerce, or so as to 
exempt its corporation engaged in interstate commerce from obedi- 
ence to any rule lawfully established by Congress for such com- 
merce. It cannot be said that any State may give a corporation, 
created under its laws, authority to restrain interstate or inter- 
national commerce against the will of the nation as lawfully ex- 
pressed by Congress. Every corporation created by a State is 
necessarily subject to the supreme law of the land. And yet the 
suggestion is made that to restrain a State corporation from in- 
terfering with the free course of trade and commerce among the 
States, in violation of an act of Congress, is hostile to the re- 
served rights of the States. The Federal court may not have power 
to forfeit the charter of the Securities Company; it may not declare 
how its shares of stock may be transferred on its books, nor pro- 
hibit it from acquiring real estate, nor diminish or increase its 
capital stock. All these and like matters are to be regulated by 
the State which created the company. But to the end that effect 
be given to the national will, lawfully expressed, Congress may 
prevent that company, in its capacity as a holding corporation 
and trustee, from carrying out the purposes of a combination 
formed in restraint of interstate commerce. The Securities Com- 
pany is itself a part of the present combination; its head and 
front; its trustee. It would be extraordinary if the court, in exe- 
cuting the act of Congress, could not lay hands upon that com- 
pany and prevent it from doing that which, if done, will defeat 
the act of Congress. Upon like grounds the court can, by appro- 
priate orders, prevent the two competing railroad companies 
here involved from co-operating with the Securities Company in 
restraining commerce among the States. In short, the court 
may make any order necessary to bring about the dissolution or 
suppression of an illegal combination that restrains interstate 
commerce. All this can be done without infringing in any degree 
upon the just authority of the States. The affirmance of the judg- 
ment below will only mean that no combination, however powerful, 
is stronger than the law or- will be permitted to avail itself of 
the pretext that to prevent it doing that which, if done, would de- 
feat a legal enactment of Congress, is to attack the reserved rights 
of the States. It would mean that the Government, which repre- 
sents all, can, when acting within the limits of its powers, compel 
obedience to its authority. It would mean that no device in evasion 
of its provisions, however skillfully such device may have been con- 
trived, and no combination, by whomsoever formed, is beyond the 
reach of the supreme law of the land, if such device or com- 
bination by its operation directly restrains commerce among the 
States or with foreign nations in violaton of the act of Congress. 

The question of the relations of the General Government with 
the States is again presented by the specific contention of each de- 
fendant that Congress did not intend "to limit the power of the 
several States to create corporations, define their purposes, fix the 
/ 



: 



TRUSTS AND INDUSTRIAL COMBINATIONS. 179 

amount of their capital, and determine who may buy, own, and sell 
their stock." All that is true, generally speaking, but the con- 
tention falls far short of meeting the controlling questions in this 
case. To meet this contention we must repeat some things already 
said in this opinion. But if what we have said be sound, repetition 
will do no harm. So far as the Constitution of the United States 
is concerned, a State may, indeed, create a corporation, define its 
powers, prescribe the amount of its stock, and the mode in which 
it may be transferred. It may even authorize one of its corpora- 
tions to engage in commerce of every kind; domestic, interstate, 
and international. The regulation or control of purely domestic 
commerce of a State is, of course, with the State, and Congress 
has no direct power over it so long as what is done by the State 
does not interfere with the operations of the General Government, 
or any legal enactment of Congress. A State, if it chooses so to 
do, may even submit to the existence of combinations within its 
limits that restrain its internal trade. But neither a State corpor- 
ation nor its' stockholders 'may, by reason of the non-action of the 
State or by means of any combination among such stockholders, 
interfere with the complete enforcement of any rule lawfully de- 
vised by Congress for the conduct of commerce among the States 
or with foreign nations; for. as we have seen, interstate and inter- 
national commerce is by the Constitution under the control of 
Congress, and it belongs to the legislative department of the 
Government to prescribe rules for the conduct of that commerce. 
If it were otherwise, the declaration in the Constitution of its su- 
premacy, and of the supremacy as well of the laws made in pur- 
suance of its provisions, was a waste of words. Whilst every in- 
strumentality of domestic commerce is subject to State control, 
every instrumentality of interstate commerce may be reached and 
controlled by national authority, so far as to compel it to respect 
the rules for such commerce lawfully established by Congress. 

The combination here in question may have been for the pe- 
cuniary benefit of those who formed or caused it to be formed. 
But the interests of private persons and corporations cannot be 
made paramount to the interests of the general public. Under the 
Articles of Confederation commerce among the original States was 
subject to vexatious and local regulations that took no account of 
the general welfare. But it was for the protection of the general 
interests, as involved in interstate and international commerce, 
that Congress, representing the whole country, was given by the 
Constitution full power to regulate commerce among the States 
and with foreign nations. 

This decision is a complete answer to those who attack the 
Administration on the one hand for failing to enforce the Sher- 
man law, or on the other for unwarrantedly assailing business 
interests. 

Attitude of the Two Parties Contrasted. 

Therefore, upon its record of promises kept, things done, work 
going on, and policies outlined, the Republican party confidently 
believes that the industrial welfare of the country will best be 
conserved by continuing in power its leaders. The issue between 
the two great parties on this subject is not clearly defined, but 
the proposed methods of dealing with trusts are widely different. 
The Republican party says let in the light, search the depths of 
industrial conditions, get the truth, then build better and strong- 
er. The Democratic party says strike in the dark, injure all 
because some are bad, destroy existing conditions before know- 
ing what to substitute. 

The American people were not led astray by the misguided 
theories of Democracy in 1896 and 1900, nor will they be misled 
this year. That party preaches discontent, but their remedy is 
destruction; the Republican party, industrially, as politically, 
recognizes discontent as an accompaniment of progress, and its 
remedy is construction. 

The Real Attitude of the Two Great Parties. 

The attitude of the two great parties on the Trust question is 
clearly defined. That of the Democratic party looks to constant 
agitation, with no restrictive legislation ; that of the Republican 
party to such restriction as will prevent arbitrary advance in 
prices, or reduction in wages through exclusive control, but not 
the destruction by legislation or injury by fictitious agitation of 
legitimate enterprise through great manufacturing systems by 
which production is cheapened, prices of manufactures reduced, 
and permanency of employment assured. As far back as the 
Fiftieth Congress the Democrats began their agitation for effect 
by the passage of a resolution authorizing the House Committee 
on Manufactures to enter upon an investigation of the Trusts of 
the United States. Such distinguished Democratic leaders as 
Representative Wilson of West Virginia, Representative Breckin- 



180 TKt SIN \M) IMH STHIAI, COMBINATIONS, 

ridge of Arkansas, Representative Bynum of Indiana, and Repre- 
sentative Bacon of New York were members of the Committee, 
and they were given power to administer oaths, examine wit- 
nesses, compel the attendance of persons and the production of 
papers, and make their investigation a thorough one. More than 
100 witnesses, Including II. A. Havemeyer and Claus Spreckels of 
sugar fame, Mr. Rockefeller, Mr. Flagler, and others of the 
Standard Oil Company, and representatives of the cotton bagging 
trust and whisky trust were examined A thousand pages of testi- 
mony were taken and the Committee delayed its report until one 
day before the expiration of the Congress, when it presented its 
testimony, but made no recommendation as to legislation, "owing 
to the present difference of opinion between members of the Com- 
mittee." .In the Fifty-second Congress the House Judiciary Com- 
mittee made another investigation, and after an examination of 
many witnesses, submitted a report in which it declared that 
"none of the methods employed by the trust in controlling the 
production or disposition of their products are in violation of the 
United States laws," and that "it is clearly settled that the pro- 
duction or manufacture of that which may become a subject of 
interstate commerce and ultimately pass into protected trade is 
not commerce, nor can manufacturers of any sort be instruments 
of commerce within the meaning of the Constitution." In 1894 
they again grappled with the Trust problem, adding to the Wilson- 
Gorman tariff law a series of provisions purporting to authorize 
the regulation of Trusts, but which neither the Democratic Presi- 
dent nor the Democratic officials who were in power when the act 
came into existence made, so far as is known, any attempt to put 
into operation. 

The difference between Democratic promises and Republican 
performances is strikingly illustrated by the enactment of the 
measure known as the Sherman Anti-Trust Law, which was 
enacted in 1890 by a Republican Congress and signed by a Re- 
publican President — Benjamin Harrison. Although the Democrats 
sneered at the bill, which they contended was simply a piece of 
buncombe and would be only a dead letter, the recent decisions of 
the Supreme Court have shown that it is at least the only piece 
of legislation ever put upon the statute books which has the sem- 
blance of power to control and prevent combinations in restraint 
of production or commerce. 

While attacks upon Trusts have been the stock in trade of 
professional agitators, none of them has offered any practical leg- 
islation which could be enforced in the several States other than 
that which might be provided through a constitutional amendment. 
Even Mr. Bryan, who omits no opportunity to declare his hostility 
to Trusts, offers no legislative remedy other than that which 
would be supplied by a constitutional amendment. In his address 
before the Trust Conference in Chicago, on September 16, 1899, he 
said: "I believe we ought to have remedies in both State and 
Nation, and that there should be concurrent remedies. * * * I 
believe in addition to a State remedy there must be a Federal 
remedy, and I believe Congress has, or should have, the power to 
place restrictions and limitations, even to the point of prohibition, 
upon any corporation organized in one State that wants to do 
business outside of the State. * * * Congress ought now to 
pass such a law. If it is unconstitutional and so declared by the 
Supreme Court I am in favor of an amendment to the Constitution 
that will give to Congress power to destroy every Trust in the 
country." Yet, in the face of this assertion, when the Judiciary 
Committee of the House of Representatives on June 1, 1900, 
brought before that body a joint resolution providing for a Con- 
stitutional amendment which should give Congress power to regu- 
late Trusts, only 5 Democrats voted for it, while practically every 
Republican in the House voted for the measure, but as it required 
a two-thirds vote, the Democrats were strong enough to defeat it. 

Trusts in Europe. 

The development of the trusts has not been confined to this 
country, but has extended throughout all the great commercial 
nations of the world. Under the direction of the Industrial Com- 
mission, Professor J. W. Jenks in 1891 made a careful study of the 
condition in Europe, his full report appearing in volume 18 of the 



TRUSTS AND INDUSTRIAL OOMKINATTONS. 



181 



Report of the Industrial Commission. His conclusions were as 
follows : 

"1. There is, relatively speaking, little objection to com- 
binations in Europe, and in some countries the governments and 
people seem to believe that they are needed to meet modern in- 
dustrial conditions. They do believe that they should be carefully 
supervised by the Government and, if necessary, controlled. 

"2. There is little or no belief that the protective tariff is re- 
sponsible for their existence. Tt is known that they at times use 
the tariff to keep their prices higher than would otherwise be 
possible, and that their export prices are often lower than their 
domestic prices. The tariff should be guarded so as to prevent 
serious abuses', but there is practically no thought of its aboli- 
tion. 

"3. Railroad discriminations have been practically abolished 
in Europe, and in consequence they have had no effect toward cre- 
ating combinations. 

"4. The great degree of publicity in the organization of cor- 
porations has largely prevented the evils arising from stock 
watering, and has evidently had much effect in keeping prices 
steady and reasonable, and in keeping wages steady and just. 

"5. There seems to be no inclination toward the passage of 
laws which shall attempt to kill the combinations. That is be- 
lieved to be impossible and unwise. Laws should attempt only to 
control, and that apparently chiefly through publicity, though 
the governments may be given restrictive power in exceptional 
cases." 

United States consuls in 1900 were requested to report such 
information as they might be able to obtain relating to trusts or 
combinations in the countries in which they were serving. These 
interesting reports were published in the series of Consular Re- 
ports (in volume 21, part 3) under the title of "Trusts and Trade 
Combinations in Europe." The following are extracts from the 
reports : 

TRUSTS IN THE UNITED KINGDOM. 

[From the U. S. Consul at Bradford^ England.] 

The combine mania has smitten this district with almost the 
fury of an epidemic, and more than any other part of the country 
it is responsible for the flotation of trusts. To what extent these 
have been effected will be clearly seen from the following table: 



Date of 


Name of company. 


Number 
of busi- 
nesses 
absorbed. 


Capitalization. 


flota- 
tion. 


English 
money. 


United States 
equivalent. 


1898. 
Dec. 14. 


Bradford Dyers' Association. 


22 

11 

9 

38 

46 


£4,500,000 

600,000 

250.000 

2,500,000 

2,750.000 


$21,899,250 


1899. 
July 4 


Yorkshire Indigo, Scarlet, and 


2,919,900 


July 6 
Oct. 9 


Bradford Coal Merchants and 

Consumers' Association. Ltd.. 

Yorkshire Wool Consumers As- 


1,216.625 
12,166.250 


1900. 
April 4 


British Cotton and "Wool Dyers' 


13.382,875 




Total 






126 


10,600,000 


51.584,900 









The above are the trusts which so far have been submitted to 
the British public for support in this district, but there is in em- 
bryo a combine which will embrace all the firms engaged in the 
manufacture of cards for the woolen and 'worsted trade. There 
are about thirty firms carrying on business, and more, than half 
have already signified their intention to form a syndicate, but it 
is felt that such a combination should comprise at least 75 p^r 
cent of the whole trade. It is expected that the capital of the 
combination, if it is formed, will be about £200,000 ($973,300) or 
£250,00$ ($1,216,625). 

There is also a movement which it is hoped will result in the 
formation of a trust comprising the Bradford dress-goods manu- 
facturers. Already a meeting has been held, and invitations have 
been sent asking whether firms would be willing to join in the 
syndicate. The dress-goods manufacturers in this district are so 
multitudinous and the variety of goods made is so great that such 



182 fBl ITf AMI INDUSTRIAL COMBINATIONS 

a trust would be almost past human genius to manage. Another 
proposed combine covers the interests of the Bradford worsted 
spinners. Here, again, the trade is confronted with such a huge 
Bcheme that many express the opinion that it will never be accom- 
plished. The matter has been freely talked over by many leading 
worsted spinners in this district with the promoter of textile com- 
bines, and although there is a good deal yet to be done, I am 
assured that matters are proceeding satisfactorily. The proposed 
combination will include not only the spinners of fine and "Bot- 
any" yarns, but also of "crossbreds." 

Spinners' and Skipping Trust. 

Consul Halstead writes from Birmingham, March 1, 1900, in 
regard to the apathy with which the people of Great Britain re- 
gard the formation of trusts. 

The news editor of the London Mail (circulation, one million 
two hundred and odd thousand) gives only some thirty-two lines 
to an item of the kind, and the editor in chief is not disturbed to 
the extent of a single editorial paragraph. Except an approving 
paragraph or two in the financial columns when the flotation is 
advertised, one can look in vain in other papers for either news 
or editorial notice referring to English trusts. Mr. Halstead con- 
tinues : 

I have a clipping from the February 1 issue of the London 
Daily Mail. It is an announcement of a proposed formation of a 
worsted spinners' trust. This trust is to have a capital of £18,- 
000,000 ($87,597,000), and one hundred and six firms are con- 
cerned ; yet the news editor of the Mail judges this item to be 
worth only a two-line head, twenty-eight lines of small type, set 
solid. The item is as follows : 

Another Huge Trust — Bradford Spinners Discuss an £18,000,000 
Combine. • 

A meeting- of spinners engaged in the worsted trade was held 
yesterday in Bradford to consider the question of forming a com- 
bination of firms in that branch of business. One hundred and 
six firms were represented. 

Mr. Scott Ling, of Manchester, who presided, explained that it 
was proposed to buy out firms on the basis of allowing nothing 
for good will of concerns which show only 5 per cent, profit. All 
profit beyond 5 per cent, will be multiplied seven and a half times, 
and that amount allowed for good will. On such a basis he calcu- 
lated they could show iy 2 to 8 per cent, for ordinary shareholders. 

A resolution in favor of combination was unanimously passed, 
and the following committee appointed to devise a scheme: Mr. 
Ickeringill, of Keighley; Mr. James Drummond, of Bradford; Mr. 
Alfred Haley, of Wakefield; Mr. A. Anderton, of Checkheaton; Mr. 
J. Hoyle, of Halifax; Mr. Smithies, of Halland, and Mr. H. White- 
head of Bradford. 

Opinion is divided as - to the possibility of a successful com- 
bination. Some put the probable total capital at £18,000,000. 

I take from the same issue of the Daily Mail the following 
extract in regard to the amalgamation as a "trust" of two great 
South African steamship companies: 

Cape Shipping Combination. 

Details are now fully arranged of the recently announced 
amalgamation of the two well-known Cape mail companies. 

The object of the amalgamation is to provide for the more effi- 
cient working of the South African trade and for the carrying out 
of the joint mail contract which the companies have made with the 
Cape Government for ten years from October next. 

The Castle Company changes its name to the "Union-Castle 
Mail Steamship Company, Limited," takes over the property and 
liabilities of the Union Company, and increases its nominal capital 
to £2,000,000. The directorates also combine, and Sir Francis 
Evans, chairman and 'managing director of the Union, joins the 
firms of Donald Currie & Co. in the control of the amalgamated 
poncern. 

A new 4 per cent debenture stock will be created, for which 
the shareholders in both companies will be allowed to exchange 
their present stock. 

It is proposed that the shares of the united company shall be 
£10 instead of £20 shares, and the shareholders of the Uniojf Com- 
pany will receive for their paid-up capital an allotment of an equal 
nominal amount of fully paid-up shares of the Union Castle Com- 
pany, and in addition will receive £6 13s. 4d. per share, payable in 
4 per cent debenture stock. 

Wail-Paper Trust. 

Under date of Birmingham, February 16, 1900, Consul Hal- 
stead says: 



TRUSTS AND INDUSTRIAL COMBINATIONS. 183 

Combinations of the kind which at home we call "trusts" are 
created here without attracting public attention or causing alarm, 
though no trouble is taken to keep the facts from getting to the 
public, and it is rare that one hears a voice raised against trusts. 
A wall-paper combination with £6,000,000 ($29,199,000) of capital 
is announced, and receives from the London Daily Mail, a news- 
paper which is very active in news gathering, only the scant at- 
tention of a two-line head, twenty-one lines of type set solid, and 
an inconspicuous position. The Mail article reads as follows : 

The Association of Wall-Paper Manufacturers, after working 
jointly since September 30, are now preparing. a prospectus, and an 
issue of capital will be made within the next few days'. 

The company is already registered with £4,000,000 of share 
capital, plus debentures, and the new issue will probably be 
£6,000,000. 

Practically every maker of paper hangings in the Kingdom is 
stated to be embraced by the federation, including Scotch, Lan- 
cashire, Yorkshire, and London concerns. The chairman of the 
combination is W. P. Huntington, late member of Parliament for 
the Darwen division of Lancashire, and sheriff of Lancashire. 

Many important consolidations, adjustments, and economies 
have already been effected since the formation of the federation. 

Trust in Bleaching Trade. 

Consul Halstead writes from Birmingham, February 24, 1900 : 
Wednesday's edition of the London Mail refers to the forma- 
tion of a bleaching trust with a capitalization of £10,000,000 or 
£12,000,000. This, in the judgment of the managing editor, is 
worthy of only one headline, twenty-two lines of nonpareil type 
set solid. The Daily Mail article reads as follows: 

Bleaehing-Triule Combine. 

The Lancashire bleaching trade will shortly be in the hands 
of a powerful company. 

It is said that the combination will involve the capitalization 
of from £10,000,000 to £12,000,000 ($48,665,000 to $58,398,000), and 
the object in view is to prevent individual concerns from indulging 
in sharp practices, cutting prices, discounts, etc. 

Individual businesses are to be taken over and worked from 
March 31 by the company, which will be known as the Lancashire 
Bleachers' Association, Limited, and the prospectus will probably 
be in the hands of the public soon after that date. 

Experts are confident that there is no branch of the textile in- 
dustries which will so well and profitably lend itself to the adop- 
tion of joint-stock-combination principles as that of the Lanca- 
shire bleaching trade. 

A provisional committee has been appointed from among the 
members of the largest firms. 

Mr. Halstead adds, July 23, 1900: 

In the advertising columns of the Times, Mail, Express, and 
other London and provincial papers appears to-day the prospectus 
of the Bleachers' Association, Limited, the cotton bleaching 
"trust" the proposed formation of which I reported some time ago. 
The share capital of this new "trust" is given at £6,000,000, and 
added to this as an exact statement of the money involved there 
are £2,250,000 in 4*4 per cent first mortgage debenture stock, mak- 
ing a total of £8,250,000, equivalent in American money to $40,- 
148,625. Power is reserved by the "trust" deed to create further 
debenture stock in addition to the amount announced, provided it 
is necessary. I have not seen, in the five daily newspapers I have 
read this morning, a single editorial comment on the formation of 
this great "trust," which is, by the way, a full brother organiza- 
tion to the Bradford Dyers' Association, Limited, an equally great 
"trust," and with which it has a working arrangement, which is 
shown by this paragraph taken from the prospectus : 

A few of the amalgamated firms are dyers as well as bleachers, 
and the two businesses' may be usefully and profitably continued 
side by side. There is, however, no intention of competing with 
the Bradford Dyers' Association, Limited, and in the case of one 
firm which carries on at one of its works piece dyeing of the 
Bradford class',* the Gompany has arranged to transfer the dye 
works to that association. 

The prospectus states that the company has been formed with 
the object of acquiring and amalgamating numerous firms and 
companies engaged in the bleaching trade and of strengthening and 

*I think this means' dyeing of wool. — Consul. 



184 TRUSTS AND INDUSTRIAL COMBINATIONS. 

extending various associations which previously existed for vari- 
ous purposes In connection with Hie trade. 

The Dames of the fifty-three linns which have entered into 
contract for the sale of their businesses to the "trust" are given, 
and are as follows: 

Richard Ainsworth, Son & Co., Halliwell Bleachworks, Boiton, 
established 1760. 

The Birkacre Company, Limited (bleaching business only), 
Birkacre Bleachworks. Chorley, established 1871. 

John & Henry Bleachley, Myrtle Grove Bleachworks', Prest- 
wich, established 1799. 

Thomas Ridgway Bridson & Sons, Bolton Bleachworks, Bolton, 
established prior to 1800. 

Thomas Ridgway Bridson & Sons, Lever Bank Bleachworks, 
Little Lever, established prior to 1832. 

W. E. Buckley & Co., Limited, Pilsworth Bleachworks, White- 
field, near Manchester, established 1878. 

Buckley & Brennand, Seedley Bleachworks, Seedley, estab- 
lished 1887. 

R. & A. Chambers', Limited, Spring Waters Bleachworks 
Whitefield, near Manchester, established 1856. 

Thomas Cross' & Co., Limited, Mortfield Bleachworks, Bolton, 
established 1820. 

Davies & Eckersley, Limited, Huyton Bleachworks, Adlington, 
Lancashire, established 1831. 

Deeply Vale & Co., Limited, Deeply Vale, near Bury. 
Eccles Bleaching Company, Limited, Bentcliffe Works, Eccles, 
established 1877.- 

Eden & Thwaites, Limited, Waters Meeting Bleachworks, Bol- 
ton, established 1770. 

Forrest. Gillies & Co., Lanfine Bleachworks, New Milns, Ayr- 
shire, established 1882. 

Andrew Greenhalgh, Clough Bleachworks, Radcliffe, estab- 
lished 1831. 

Andrew Greenhalgh, Ballydown Bleachworks, Banbridge, es- 
tablished 1820. 

Edward Hall & Bros., Limited, Whaley Bridge Bleachworks, 
Whaley Bridge, established 1830. 

Adam Hamilton & Sons, Blackland Mill, near Paisley, estab- 
lished 1780. 

Handforth Bleaching Company, Limited, Handforth, estab- 
lished 1860. 

James Hardcastle & Co., Bradshaw Works, Bolton, established 
1784. 

Thomas Hardcastle & Son, Firewood Works, Bolton, estab- 
lished 1803. 

Hepburn & Co., Limited, The Square Works, Ramsbottom, es- 
tablished prior to 1800. 

Robert Heywood, Crescent Bleachworks, Salford, established 
1838. 

Horidge & Co., Raikes Bleachworks, Bolton, established 1822. 
The Irkdale Bleachworks Company, Limited, Irkdale Works, 
Middleton, established 1874 

Kay & Smith, Lands' End Works, Middleton, established prior 
to 1820. 

The Kersal Bleaching Company, Kersal Vale Bleachworks, 
Higher Broughton. established 1892. 

A. J. King & Co., Ingersley Vale, Bollington, near Macclesfield, 
established 1876. 

Kirkpatrick Brothers, Ballyclare Bleachworks, Ballyclare, 
County Antrim, established prior to 1800. 

Knowles & Green, Underscore Bleachworks, Bolton, estab- 
lished 1800. 

Thomas Lewis Linsey, Hollins Vale Bleachworks, Whitefield, 
established 1849. 

Longworth & Co., Springfield Bleachworks, Astley Bridge, Bol- 
ton, established 1840. 

James McHaffie & Son, Kirktonfield, Neilston, established 1817. 
John McNab & Co., Midtownfield, Howard, New Brunswick, es- 
tablished 1825. 

Melland & Coward, Limited, Heaton Mersey, Manchester, es- 
tablished 1820. 

H. Milner & Co., Northdean Bleachworks, Pendlebury, estab- 
lished 1885. 

William Mosley, Cheadle Bleachworks', Cheadle, Manchester, 
established 1875. 

George Murton & Co., Sharpies Bleachworks and Mill Hill 
Bleachworks, Bolton, established 1845. 

The Rawtentsall Bleaching Company, Rawtentsall, established 
1884. 

Thomas Ridgway & Co., Wallsuches Bleachworks, Horwich, 
established 1801. 

Robert K. Roberts, Stormer Hill Bleachworks, Tottington, 
near Bury, established 1799. 

Executors of S. Rothwell, Woodhill Bleachworks, Elton, near 
Bury. 

G. & S. Slater, Dunscar, Bolton, established prior to 1800. 
Simpson & Jackson, Street Bridge Bleachworks, Royton, Old- 
ham, established 1761. 

John Smith, Jr., & Co., Great Lever Works', Bolton, estab- 
lished 1840. 

John Stanning & Son, Limited, Leyland Bleachworks, Leyland, 
established prior to 1830, 



r TRUSTS AND INDUSTRIAL COMBINATIONS. 185 

S'ykes & Co., Limited, Edgeley Bleachworks, Stockport, estab- 
lished 1871. 

John Waterhouse & Co.. Tootel Bridge Bleachworks, Breight- 
ment, Bolton, established 1793. 

Samuel Walch, Outwood Bleachworks, near Prestwich, estab- 
lished 1850. 

John Whitehouse, Elton Works, Bury, established prior to 1800. 

John Whittaker & Co., Mount Sion Bleachworks, Radcliffe, es- 
tablished 1771. 

Charles Whowell, Two Brooks Bleachworks, Tottington, es- 
tablished 1859. 

John Young & Co., Crumpsall, Limited, Anchor Bleachworks, 
Hendham, Hendham Vale, Manchester, established prior to 1800. 

From the prospectus I take the following paragraphs explana- 
tory of the purposes of the trust : 

The principal business of the company is the bleaching and 
finishing of cotton piece goods of every description. 

The chief center of the cotton industry is Manchester, and all 
the works acquired by the company are situated within convenient 
distance of that city excepting those of four Scotch and two Irish 
firms, who are engaged in special branches of the bleaching busi- 
ness, and are regarded as desirable acquisitions for the company. 

A few of the malgamated firms are dyers as well as bleachers, 
and the two businesses may be usefully and profitably continued 
side by side. There is, however, no intention of competing with 
the Bradford Dyers' Association, Limited, and in the case of one 
firm, which carries on at one of its works piece dyeing of the 
Bradford class, the company have arranged to transfer the dye 
works to that association. 

The bleaching trade is' one of the oldest in Lancashire, and 
has proved itself a steady and prosperous one. It is also preemi- 
nently a safe trade. Bleachers are not buyers or sellers of the 
goods upon which they operate, their business being to bleach and 
finish goods for the merchants. It is practically free from ordi- 
nary trade risks; the profits are believed to have been exception- 
ally stable, and there is no record of any bleacher having suffered 
appreciable loss through bad debts' incurred in the course of his 
legitimate trade. 

The great and ever increasing difficulty of obtaining an ade- 
quate supply of water renders the position of the old established 
bleaching firms a very strong one, while enforcement of law 
against pollution of rivers tends still further to prevent the erec- 
tion of new works. 

For a great many years past, there have existed in the Man- 
chester bleaching trade voluntary associations for the regulation 
of prices in branches of the business and for other purposes, and 
these have worked in harmony with the merchants as well as to 
the advantage of the trade; but it has been realized that the -full 
advantages of cooperation can be secured only by amalgamation, 
for the success of which the organization and existence of these 
associations give exceptional facilities. 

The present amalgamation has secured the adhesion of many 
firms who were not previously members of any price association. 

It is believed the formation of this company will strengthen 
the cordial relations already existing with the Manchester merch- 
ants, for, being in possession of works of every description capa- 
ble of dealing at appropriate prices with every branch of bleaching 
and finishing, the amalgamated firms will be enabled to satisfy the 
varying demands of the whole Manchester trade and meet any 
competition from abroad or elsewhere. 

Individual effort will be maintained among che various' amal- 
gamated firms. So far as possible, the management of each works 
will be left in the hands of those who have been responsible for 
its conduct in the past, and the heads of each branch may under 
the articles of association be remunerated wholly or partially by a 
commission of percentage on the profits of the branch managed by 
them. Each firm will continue to deal personally with its own 
customers, and arrangements which have been made by individual 
firms with regard to special finishes for particular customers will 
be strictly adhered to. 

The general management of the business of the company is 
vested in general managers. The first two managers will hold 
. office for three years, and the remuneration attached to their posts 
is limited to a commission, payable to each of them, of 2y 2 per 
cent on the balance of the net profits made by the company during 
each year over and above the sum required to pay the debenture 
interest and preference divided for that year. 

The directors believe that the successful management of the 
undertaking and the cordial cooperation of all the amalgamated 
firms are secured by the appointment as first general managers of 
Mr. John Brennand and Mr. John Stanning. 

The remuneration of the chairman, vice-chairman, and direc- 
tors (other than the general managers) will be fixed by the share 
holders in general meeting. 

As so many kinds of cottons are shipped to America from Man- 
chester, this trust has an interest to us. In the year ending De- 
cember 31, 1899, it sent to the United States, colors, dyestuffs, and 
chemicals to a total value of $125,592.76. 



Igg TRUSTS AND INDUSTRIAL COMBINATIONS. 

Cement Trust. 

Consul Ilalstead writes from Birmingham, under date of July 
14, 1900 : 

British newspapers are to-day printing in their advertising 
columns the preliminary notice of the Associated Portland Cement 
Manufacturers. Limited, with a total capital of £8,000,000. This 
$40,000,000 cement "trust" attracts do attention, and its formation 
is not even commented upon by the newspapers. In a recent num- 
ber of the Advance Sheets of Consular Reports, Consul Worman, 
Of Munich, announces that German manufacturers of cement are 
to hold a meeting for the formation of a syndicate, which will 
open a central bureau for the sale of all cement of German manu- 
facture. 

Scotland. 

[From the United States' Consul at Edinburgh.] 

I submit the following list of trade combinations in the United 
Kingdom : 

In February, 1891, the United Alkali Company, Limited, was 
formed, combining in one undertaking various chemical works in 
the United Kingdom, in which some or all of the following chemi- 
cals are manufactured, viz. : Bleaching powder, soda ash, caustic 
soda, white alkali, sulphate of soda, crystals of soda, chlorate of 
potash, sulphuric acid, hydrochloric acid, sulphur, etc. Salt mines 
and works were also acquired. This company consolidated the 
works and businesses of forty-eight firms or companies. Offices, 
Liverpool. 

In July, 1896, J. & P. Coats, Limited, thread manufacturers, a 
company organized several years before, acquired the dominant 
interest in the businesses of Messrs. Clark & Co., Messrs. Jonas 
Brooks & Bros., and Messrs James Chadwick & Bro., Limited, and 
the capital was increased from £3,750,000 ($18,249,375) to £5,500,- 
000 ($26,705,750). Offices, Paisley. 

The English Sewing Cotton Company, Limited, was formed in 
November, 1897, uniting the principal English firms and companies 
engaged in the manufacture of sewing, crochet, knitting, mend- 
ing and other cottons, including in some cases the allied busi- 
nesses of cotton spinning, doubling, twisting, dyeing, bleaching, 
polishing, bobbin making, etc. Fifteen companies were amalga- 
mated. Capital, £2,750,000 ($13,382,875). Offices, Manchester. 

The Fine Cotton Spinners and Doublers, Limited, was formed 
in May, 1898, consolidating thirty-one businesses and having a 
capital of £6,000,000 ($29,199,000). 

The American Thread Company, Limited, organized in Decem- 
ber, 1898, united thirteen businesses. Capital, £3,720,000 ($18,- 
103,380). 

The Bradford Dyers' Association, Limited, was formed in De- 
cember, 1898, for the purpose of acquiring the businesses of the 
various companies and firms engaged in the piece-dyeing trade. 
Twenty-two businesses were thus amalgamated, comprising about 
90 per cent of the Bradford piece-dyeing trade. 

In July, 1899, The Yorkshire Indigo, Scarlet, and Color Dyers, 
Limited, was formed for the purpose of acquiring and carrying on 
the works of several firms and companies engaged in the Yorkshire 
indigo, scarlet, and color dyeing trade. Eleven businesses were 
consolidated. Capital, £600,000 ($2,919,000). Offices, Hudders- 
field. 

In July, 1899, The Bradford Coal Merchants and Consumers, 
Limited, was formed, uniting eight businesses. Capital, £250,000 
($1,216,625). 

The Yorkshire Wool Combers' Association, Limited, was or- 
ganized in October, 1899, acquiring and amalgamating into one 
concern the wool-combing businesses of thirty-eight companies 
and firms. Capital, £2,500,000 ($12,166,250). Offices, Bradford., 

The British Oil and Cake Mills, Limited, formed in July, 
1899, amalgamated seventeen companies and firms engaged in oil 
and cake manufacture and oil refining. Capital, £1,500,000 ($7,- 
299,750). Offices, London. 

Barry, Ostlere & Shepherd, Limited, incorporated in October, 
1899, consolidated the businesses of five companies having eight 
works engaged in the manufacture of floor cloth and linoleum. 
Capital, £4,000,000 ($19,4(36,000). Offices, Kirkcaldy. 



.... 



TRUSTS AND INDUSTRIAL COMBINATIONS. 18' 



The United Indigo and Chemical Company, Limited, formed in 
November, 1899, consolidated eight companies. Capital, £250,000 
($-1,216,025). Offices, Manchester. 

The Calico Printers' Association, Limited, formed in December, 
1899, amalgamated sixty businesses valued at £8,047,031. Capi- 
tal, £9,200,000 ($44,771,800). Offices, Manchester. 

The Wall Paper Manufacturers, Limited, incorporated in Feb- 
ruary, 1900, united thirty-one firms and companies engaged in 
the manufacture of wall papers and raised decorative materials. 
Capital, £4,200,000 ($20,439,300). Offices, Darwen, England. 

The United Velvet Cutters' Association, Limited, formed in 
March, 1900, consolidated four businesses, the principal ones en- 
gaged in this branch of trade in England. Capital, £300,000 ($1,- 
459,950). Offices, Manchester. 

The British Cotton and Wool Dyers' Association, Limited, in- 
corporated in April, 1900, united forty-six businesses. Capital, £2,- 
750,000 ($13,382,875). 

In The Yorkshire Soap Makers' Association, Limited, formed 
last April, were amalgamated twelve firms and companies en- 
gaged in the soap making, oil, and packing, cotton-waste manu- 
facturing, and other kindred trades. Capital, £400,000 ($1,940,- 
000). Offices, Bradford. 

I send under separate cover a copy of the prospectus of each 
of these combinations :1 

The United Alkali Company, Limited; The English Sewing 
Cotton Company, Limited; The Yorkshire Indigo, Scarlet and 
Color .Dyers, Limited ; The Yorkshire Wool Combers' Association, 
Limited ; The British Oil and Cake Mills, Limited ; Barry, Ostlere 
and Shepherd, Limited; United Indigo and Chemical Company, 
Limited ; The Calico Printers' Association, Limited ; The Wall 
Paper Manufacturers, Limited ; The United Velvet Cutters' Asso- 
ciation, Limited; The Yorkshire Soap Makers' Association, Lim- 
ited; and The Bradford Dyers' Association, Limited. 

A rumor has been current that there is a movement among 
the tweed manufacturers of the south of Scotland to amalgamate, 
but those manufacturers who have been approached on the subject 
say that the story is an invention. 

As to the effect of the combinations in various trades upon 
production, wages, and prices, the opinions of well-informed men 
differ. It would seem that, generally speaking, the effect has been 
most marked in preventing a rise in wages. 

Wall paper has advanced about 10 per cent since March last. 
In the same period, ordinary sewing cottons have risen 15 per 
cent, and ordinary linen sewing thread from 10 to 15 per cent. 
The cheaper qualities of floor cloth are 2 per cent higher than the 
average prices in September, 1899, and the better qualities have 
risen 4 per cent since January 1, 1900. 

Glasgow. 

[From the United States Consul at Glasgow.] 

Under the law of Scotland, which is also the law of the 
United Kingdom, a corporation may be formed for the purpose 
of carrying on any business, by seven persons subscribing a memor- 
andum of association. The memorandum states the object for 
which the company is to be formed, the amount of capital with 
which it is to start business, and the number of shares into which 
the capital is divided, and whether any number of shares are to 
be preferred over the others as to dividend or as to payment of 
capital in the event of winding up ; also the name of the proposed 
company and the situation of its registered office. The subscribers 
of the memorandum of association may only have one share 
each. This memorandum of association is usually accompanied 
by articles of association, which are by-laws for regulating the 
business of the company, the appointment of directors, votes of 
shareholders, etc. These documents are sent to the registrar of 
joint-stock companies, who is a Government official, and on being 
registered by him, a certificate of incorporation is issued to the 
company. The Company is then incorporated and entitled to com- 
mence business. Hitherto, there has been no regulation as to 
what proportion of the nominal capital must be subscribed before 
commencing business, but there is a bill at present before the legis- 
lature, and which it is intended will became law immediately. 



188 TRUSTS AND INDUSTRIAL COMBINATIONS. 

making it imperative that a certain proportion of the nominal 
capital must be subscribed before any business is done. The lia- 
bility of shareholders is limited to the amount, if any, unpaid on 
the shares held by them. A list of shareholders, with the num- 
ber of shares held by them and the amount paid, and a balance 
sheet showing the position of the company, must be lodged with 
the registrar annually. Any person, whether a creditor or not, 
can, on payment of a small fee, get from the registrar full in- 
formation as to the positions of any registered company. 

So far as trust combinations are concerned, there are no 
statutory enactments either prohibiting or regulating them. Such 
combinations are formed under the provisions appertaining to 
all corporations. It is worthy in passing, however, to mention 
that little or no attention is given to these combinations, when 
formed, in the public prints. They excite no comment whatever. 
It is for that reason very difficult to obtain information of their 
workings and influence. In this report, I have endeavored to give 
such details as I can obtain of the principal trusts or combina- 
tions which have their habitation in Scotland. The list may pos- 
sibly not be complete, though in the main I think it will be found 
to include all worth mentioning. 

I have said above that little or no discussion of trusts is 
found here in the public prints. Very recently, a member of the 
Glasgow Chamber of Commerce gave notice in that body that at 
the next meeting he would move to discuss the subject of trusts 
or combinations, and to ask the Chamber to record its opinion 
that such combinations are "highly prejudical to the commercial 
interests of this country and unjust to others engaged in similar 
trades or manufactures, creating as they do virtual monopolies." 
It was further proposed by this member that the directors of the 
Chamber should advise the Chamber to petition the Government 
to take "such steps as seem to them right" to prevent the forma- 
tion of these combinations and to recommend other chambers to 
take similar actions. 

Speaking of this movement on the part of the Chamber of 
Commerce, the "Glasgow Herald" says: 

It has been objected that this is not a matter of practical poli- 
tics, and should not, therefore, be debated by the chamber at all. 
But it is a matter of large social and economic importance that 
will sooner or later be projected into the ordinary political arena. 
If the system of business combinations known in America as 
"trusts" has not in this country, or in Europe, either attained the 
dimensions or developed the evil qualities to be found in the 
United States, it is by no means a novelty in the Old World. It is, 
moreover, a perfectly natural evolution of commercial enterprise, 
whether it is' to be commended or not. Nor is there anything new 
in the antipathy to such combinations and the desire to prevent 
them by force of law, for there existed on our statute books a 
hundred years ago, or more, a number of ordinances imposing 
penalties on combinations to fix the prices or secure the monopoly 
in several branches' of industry. There is a material practical dif- 
ference, no doubt, between trusts as we hear of them in America 
and as we know them in Europe. The big American trusts are 
formed on such a scale as to carry out the definite object of con- 
trolling all the influences that can affect the interests of the co- 
partners, including railway and other corporations and local, State, 
and Federal governing bodies. For the most part, the combines 
in Great Britain and on the Continent are of comparatively modest 
dimensions, and are, or are alleged to be, formed to prevent exces- 
sive underselling, injurious to the producers and not greatly bene- 
ficial to the consumers. In both cases the ultimate aim is, of 
course, profit, and profit is the legitimate aim of all commerce. 
It becomes illegitimate only when gained at the expense of the 
Commonwealth. If, for instance, trusts or combines operate in re- 
straint of trade, they are injurious to the Commonwealth. And it 
is just here that economic opinion varies*. To the American trusts 
the balance of opinion is adverse. As to the European combines, 
opinion is pretty much divided. Curiously enough, Germany has 
both more numerous and larger industrial organizations than any 
other country on this side of the Atlantic. It is' stated that there 
are upward of two hundred trusts in Germany, but probably only 
a very few of them at all approximate to American ideas. For 
the majority of them it is claimed that by checking overproduction 
and preventing underbidding, they have proved a blessing to the 
trades concerned, without at all affecting the public welfare. And 
here it may be at once admitted that, while it is for the public wel- 
fare to have commodities cheap, it is not for the public welfare 
that producers should be ruined and industries destroyed in the 
pursuit of cheapness. Perhaps the German combination best known 
to Britain is the Rhenish-Westphalian Coal Syndicate, which con-' 
trols the bulk of the German coal industry and practically regu- 
lates prices. It is' by no means clear that the public welfare has 
not suffered at the hands of this combination, And it would be un- 



TBUSTS AND INDUSTRIAL COMBINATIONS. 189 

wise to conclude that this and similar combinations in Germany are 
popular, or at all events are not regarded with popular disfavor 
merely because they have not been denounced by any portion of 
the people as fiercely as the trusts are denounced in America. The 
circumstances of the two countries are so very different. 

Perhaps one reason why the German trusts have not created a 
political crisis is that they have hitherto exercised their powers 
with moderation, and have not attempted to manipulate prices so 
as to give cause for legal interference. And the same may be said 
of the combines and unions that have been formed in this country 
of recent years. Thread has not been made dearer by the great or- 
ganization of thread producers, though, of course, it may be said 
that it might have been cheaper had production remained free and 
open. It is probable that coal would have been no dearer than it is' 
now had the late Sir George Elliot been able to carry out, his 
scheme of a great coal combine. But there are other considerations 
besides the influence of such organizations upon price. There is, 
for instance, the distribution of productive industry. Under the 
trust system, the plan followed is to concentrate production for 
economy, and to close up the least profitable factories. One has 
only to study the history of th^s Alkali union to see how, by this 
method, an industry may be cleared out of several districts alto- 
gether, to the obvious disadvantage of the workers and traders 
in these districts. It has been sometimes said by American writ- 
ers that it is the free-trade principles of Britons that lead them to 
comment so severely on the trust system, but free trade has not 
prevented the development of a form of the system here — a de- 
velopment which has presented some very striking examples within 
quite recent months. The very essence of all these combines is' 
monopoly. Now monopoly is an ugly word, but it is not necessarily 
a bad thing. Monopoly in practical economics is not absolute ab- 
sorption by individuals or associations of individuals. It is, rather, 
the antithesis of competition. An American economist has, not 
unhappily, provided a definition of modern monoply as substantial 
unity of action on the part of persons engaged in some particular 
kind of business" which gives practical control over prices. That 
control, of course, is obtained by concentration and economization 
in production and distribution. And one of the greatest powers 
the monopolists under the trust and combine systems possess is 
that of underbidding. They can stave off competitors by undersell- 
ing, but this very power induces the prudential policy of staving off 
competition by keeping prices at a moderate level. When all is' 
said and done, however, one is constrained to perceive that trusts 
and combines have not abolished overproduction or prevented in- 
dustrial crises. And, with whatever good features they may be 
accredited, we must remember that, if impelled by greed and un- 
scrupulousness, such organizations must in time involve very 
serious dangers to the Commonwealth. Is it safe to trust human 
nature with the opportunity and the means to wax fat and kick 
at the expense of the community? * 

The impression that seems to exist here that, somehow or 
other, these "combinations" in Great Britain differ in some of 
their essentials, aims, objects, and workings from trusts in 
America, is erroneous. If there be any difference it is merely in 
degree rather than in kind. Trusts in this country have thus far 
met with no opposition either in legislation or public opinion. 
Consequently, they have not been called upon in self-defense to 
exercise those more disagreeable qualities which are attributed 
to them by aggressive enemies. The question of trusts has never 
figured in politics (few commercial, economic, or financial ques- 
tions do in this country), hence no accusations of official favorit- 
ism to gain political advantage are made. However, one has but 
to go through the country and note the tall chimney stacks stand- 
ing here and there, idle and alone, from which the rest of the 
works have been moved or razed, to understand that the com- 
bination has reduced output or confined operations to narrower 
limits . 

Extract from Speech of General Garfield. July 2, 1873. 

"What is likely to be the effect of railway and other similar 
combinations upon our community and our political institutions? 
Is it true, as asserted by the British writer quoted above, that 
the State must soon recapture and control the railroads, or be 
captured and subjugated by them? Or do the phenomena we are 
witnessing indicate that general breaking up of the social and 
political order of modern nations so confidently predicted by a 
class of philosophers whose opinions have hitherto made but little 
impression on the public mind? That you may not neglect this 
broader view of the question, I will quote some sentences written 
by Charles Fourier, sixty-six years ago — nearly a quarter of a 
century before the fire of the first steam locomotive was lighted. 
After tracing the course of civilization through its several phases 



190 TRUSTS AND INDUSTRIAL COM HI NATIONS. 

of development, and declaring that it was then (1808) past the 
middle Of its third phase, ami moving towards its own destruction, 
be said : 

"Civilization is tending towards the fourth phase, by the in- 
- fiuence of joint stock corporations, which, under the cover of cer- 
tain legal privileges, dictate terms and conditions to labor, and 
arbitrarily exclude from it whomever they please. These corpora- 
tions contain the germ of a vast feudal coalition, which is destined 
soon to invade the whole industrial and financial system, and give 
birth to a commercial feudalism. * * * These corporations 
will become dangerous and lead to new outbreaks' and convulsions 
only by being extended to the whole commercial and industrial 
system. The event is not far distant, and will be brought about 
all the more easily from the fact that it is not apprehended. * * 
* Extremes meet; and the greater the extent to which anarchial 
competition is carried, the nearer is the approach to the reign of 
universal monopoly, which is the opposite excess. It is the fate of 
civilization to be always balancing between extremes. Circum- 
stances axe tending toward the organization of the commercial 
classes into federal companies, or affiliated monopolies, which, oper- 
ating in conjunction with the great landed interest, will reduce the 
middle and laboring classes to a state of commercial vassalage, 
and by the influence of combined action will become master of the 
productive industry of entire nations. The small operators will 
be forced indirectly to dispose of their products according to the 
wishes of these monopolies; they will become mere agents for the 
coalition. We shall thus see the reappearance of feudalism in an 
inverse order, founded on mercantile leagues, and answering to the 
baronial leagues .of the middle ages. Everything is concurring to 
produce this result. * * * We are marching with rapid strides 
toward a commercial feudalism, and to the fourth phase of civili- 
zation." 

"These declarations read something like prophecy, so far as 
they relate to the effects of combined corporations. New mechan- 
ical forces have hastened the development of corporations since 
Fourier w T rote. We need not take alarm at his prophecy of the 
speedy decay of civilization; but the analogy between the in- 
dustrial condition of society at the present time and the feudalism 
of the middle ages is both striking and instructive. In the dark- 
ness and chaos of that period, the feudal system was the first 
important step towards the organization of modern nations. 
Powerful chiefs and barons intrenched themselves in castles, and 
in return for submission and service gave to their vassals rude 
protection and ruder laws. But as the feudal chiefs grew in 
power and wealth, they became the oppressors of their people, 
taxed and robbed them at will, and finally, in their arrogance, 
defied the kings and emperors of the mediaeval states. From 
their castles, planted on the great thoroughfares, they practiced 
the most capricious extortions on commerce and travel, and thus 
gave to modern language the phrase 'to levy black mail.' The 
consolidation of our great industrial and commercial companies, 
the power they wield, and the relations they sustain to the 
States and to the industry of the people, do not fall far short of 
Fourier's definition of commercial or industrial feudalism. The 
modern barons, more powerful than their military prototypes, own 
our vast highways, and levy tribute at will upon all our vast 
industries. And, as the old feudalism was finally controlled and 
subordinated only by the combined efforts of the kings and the 
people of the free cities and towns, so our modern feudalism can 
be subordinated to the public good only by the great body of the 
people acting through their governments by wise and just laws. 

"My theme does not include, nor will this occasion permit, 
the discussion of methods by which this great work of adjustment 
may be accomplished. But I refuse to believe that the genius and 
energy that have developed these new and tremendous forces, will 
fail to make them, not the masters, but the faithful servants of 
society. It will be a disgrace to our age and to us if we do not 
discover some method by which the public functions of these or- 
ganizations may be brought into full subordination to the public, 
and that too without violence, and without unjust interference 
with the rights of private individuals. It will be unworthy of 
our age and of us, if we make the discussion of this subject a 
mere warfare against men. For in these great industrial enter- 
prises have been, and still are, engaged some of the noblest and 
worthiest men of our time. It is the system, its tendencies and 
its dangers, which society itself has produced, that we are now to 
confront. And these industries must not be crippled, but pro- 
moted. The evils complained of are mainly of our own making. 



TRUSTS AND INDUSTRIAL COMBINATIONS. 191 

States and communities have willingly and thoughtlessly con- 
ferred these great powers upon railways, and they must seek to 
rectify their own errors without injury to the industries they 
have encouraged. * * * 

"It depends upon the wisdom, the culture, the self-control of 
our people, to determine how wisely and how well this question 
shall be settled. But that it will be solved, and solved in the 
interest of liberty and justice, I do not doubt. And its solution 
will open the way to a solution of a whole chapter of similar 
questions that relate to the conflict between capital and labor. 
The gloomy views of Socialistic writers on this question would 
have more force, if the dangers here discussed had grown up in 
spite of our efforts to prevent them. But the fact is they have 
grown up by our help, while we were unconscious of the fact that 
they were dangers." 

DEMOCRATIC RECORD ON TRUSTS. 

[Address of Hon. Leslie M. Shaw Before the Young Men's Repub- 
lican Club, Providence, R. L] 

Hon. Leslie M. Shaw, Secretary of the Treasury, before the 
Young Men's Republican Club, Providence, R. I., Wednesday 
evening, March 23, 1904, said in part: 

"No sooner was' the result of the merger case announced than 
the opposition inaugurated widely varying and inconsistent tac- 
tics to rob the Adminstration of the fruits of its victory. Some 
demanded the institution of similar suits against every large busi- 
ness and producing enterprise and every consolidation of railroad 
interests, whether of competing systems or of continuous' lines. 
The most amusing effort to avoid a comparison of Republican 
and Democratic administrations, to the great advantage of the 
former, appears in a recent interview by ex-President Cleveland. 
He does not claim to have recommended any anti-trust legislation 
during either of his administrations. He does not claim that any 
anti-trust legislation was passed during either of his administra- 
tions. He does' not claim credit for any litigation ever instituted 
to suppress any trust or combination during either of his adminis- 
trations. He simply seeks to explain why nothing was done, and 
he places the responsibility therefor upon the courts and the Con- 
stitution and upon the fact that the Northern Securities Company 
was not organized during his administration. 

"I am very glad that the ex-President has again commenced 
to take notice, notwithstanding the McKelway letter.^ Eight years 
is a long time to remain in mourning. But now that he has volun- 
tarily entered the lists and invited comparisons, he can not com- 
plain if comparisons be made. 

"Mr. Cleveland was first inaugurated President March 4, 1885.' 
Neither in his inaugural address nor in any message does' he men- 
tion the subject of trusts until immediately preceding the election 
of 18S8. In his last message preceding that campaign he refers to 
the existence of 'combinations frequently called trusts,' and closes 
with this sage conclusion: 

" 'The people can hardly hope for any consideration in the 
operation of thes'e selfish schemes.' 

V'He recommends no relief and suggests no remedy. Neverthe- 
less the Congress to which this comprehensive statement of fact 
was submitted, a majority of the Members' of which belonged to his 
school of political thought, appointed a commission to investi- 
gate the subject. The purpose of the commission was to con- 
vince the people that their interests were not being neglected, 
at least during the campaign, and that if Mr. Cleveland was re- 
elected some remedial legislation would follow. To that end this 
commission held meetings from time to time throughout the cam- 
paign. Mr. Cleveland was not re-elected, however, but when 
Congress reconvened, in a paragraph of five lines, he refers to 
the subject of trusts, and closes with this sad and terrifying an- 
nouncement: 'Corporations, which should be the carefully re- 
strained creatures of the law and the servants of the people, are 
fast becoming the people's masters.' But he recommends no relief 
and suggests no possible way of escape. 

"Two days before the inauguration of President Harrison the 
commission to which I have referred made its report, setting forth 
what evidently appeared to the commission as a most deplorable 
condition. 

" 'Your committee respectfully report that the number of com- 
binations and trusts formed and forming in this country is', as 
your Committee has ascertained, very large, and affects a large por- 
tion of the important manufacturing and industrial interests of the 
country. They do not report any list of these combinations, for 
the reason that new ones' are constantly forming and old ones 
are constantly extending their relations so as to cover new 
branches of business and invade new territories.' 

"Their words of encouragement which follow must be read in 
the light of the fact that two days later a Republican Congress 
elected some months before, was to convene. Listen! 

" 'Your committee further report that owing to present differ- 
ences of opinion between the members of your committee, they 



193 TRUSTS AND JM)I STK1A1. COMBINATIONS. 

limit this report to submitting to the careful consideration of 
subsequent Congresses the tacts shown by the testimony taken 
before the committee.' 

"Both the President and the committee acknowledges the exis- 
tence of harmful trusts and combinations, but neither holds forth 
to the people any ray of hope except at the hands of those who 
were about to fill their seats. 

"The Republican Congress was' not long Inactive. The very 
first bill introduced in the Senate of the Fifty-first Congress was 
John Sherman's Anti-Trust bill, Senate File No. 1. It passed both 
Houses and received the signature of Benjamin Harrison. 

"The passage of this act was followed by several suits for its' 
enforcement and several decisions by the Supreme Coure were 
secured, declaring it constitutional and applying it to various con- 
ditions. Then, on March 4, 1893, President Cleveland was again in- 
augurated, and in his Inaugural address he refers to trusts, saying: 

" 'These aggregations and combinations frequently constitute 
conspiracies against the interests of the people, and in all their 
phases they are unnatural and opposed to our American sense of 
fairness. To the extent that they can be reached and restrained 
by Federal power the General Government should relieve our cit- 
izens from their interference and exactions.' 

"He suggests no modification of the Sherman act, and recom- 
mends nothing in its place, but in harmony with the teachings of 
State sovereignty statesmanship, of which he always had been, 
and therefore always will be, a diligent student, he suggests that 
it is' very doubtful whether the Federal Government has any 
jurisdiction in the premises. 

"That was in his inaugural address. He does not again refer to 
the subject of trusts in message or proclamation until December, 
1896, after the election of William McKinley, when he can throw 
the responsibility upon another. In this, his last message, he de- 
nounces combinations of every description in language as intem- 
perate and inflammatory as was ever employed by his party's more 
recent candidate for the Presidency. He says: 

" 'Their tendency is to crush out individual independence and 
to hinder and prevent the free use of human faculties and the full 
development of human character.' 

"He then discouraged Federal legislation by saying: 

" 'The fact must be recognized, however, that all Federal legis- 
lation on this subject may fall short of its purpose because of 
the complex character of our governmental system, which, while 
making the Federal authority supreme in its' sphere, has carefully 
limited that sphere by meets and bounds that cannot be trans- 
gressed. The decision of our highest ourt on this precise question 
renders It quite doubtful whether the evils of trusts and monop- 
olies can be adequately treated through Federal action unless they 
seek, directly and purposely, to include in their objects transporta- 
tion or intercourse between States or between the United States 
and foreign countries.' 

"This, so far as the record shows, is his last utterance, official 
or otherwise, on the subject of trusts, until he explains, in his re- 
cent interview, the reason why nothing was done during either of 
"his administrations. While the platform on which he was elected • 
the second time promised much in the way of anti-trust legislation, 
nothing was done except to include in the tariff act of 1894 a pro- 
vision rendering 'null and void any combination, conspiracy, trust, 
agreement, or contract between two or more persons or corpora- 
tions engaged in importing articles from any foreign cuntry into 
the United States intended to operate in restraint of trade or to 
increase the market price of any imported article or any manufac- 
ture into which imported articles have entered.' Their sole 
legislation was against combinations of importers, with intent 
to put up the price of imported goods. In no way, shape, or 
form did they seek to prohibit a combination of American manu- 
facturers, producers, or transportation companies. It is needless 
to say that no effort has been or ever will be made to enforce this 
act, for it is directed against an imaginary evil. Importers may 
represent foreign trusts, but they do not combine in this country 
to increase the price of their imported wares. It was' intended to 
please the people and I see no reason to presume that any existing 
or contemplated trust was scared thereby. 

"And now I want to refer to the language of Mr. Cleveland's 
explanation for the sad neglect of his administration as* set forth 
in his authorized interview. He says: 

" 'The question of the Government taking legal action against 
the so-called trusts was given much consideration during my last 
administration, from 1893 to 1897. I recall that I examined closely 
the law and received reports from Mr. Olney, who was then 
Attorney-General. I was most anxious to have something done, 
but we were blocked by decisions of the Supreme Court, which at 
that time tied our hands. * * * The decisions of the Supreme 
Court, as pointed out in my message, restricted our action against 
trusts unless they were engaged in interstate transportation. 
There was a distinct difference drawn between railroads and pure- 
ly producing combinations. It could not be said that the sugar 
trust, or the beef trust, or the Standard Oil Company was directly 
engaged in interstate transportation.' 

"I think Mr. Cleveland has overlooked the fact that Attorney- 
General Knox has at this time an injunction in full force against 
seven corporations, one copartnership, and twenty-three individ- 
uals' engaged in the production and transportation of meats and 
meat products, restraining them, as the opinion shows, from re- 
quiring their purchasing agents to refrain from bidding against 



TRUSTS AND INDUSTRIAL COMBINATIONS. 193 

each other when making purchases; from bidding up the price of 
live stock for a few days to induce large shipments, and then 
ceasing to bid so as to obtain live stock at prices less than it 
would bring in the regular way; from agreeing between them- 
selves upon prices to be adopted by all; from restricting the quan- 
tities of meat to be shipped; from requiring their agents to im- 
pose uniform charges for cartage, and from making agreements 
with transportation companies for rebates and other discrimination 
rates'. 

"Of course, this action is based upon the allegation admitted in 
the demurrer, that these packing concerns are engaged not only 
in the production of articles entering into interstate commerce, 
but that the concerns are themselves engaged in interstate com- 
merce. Admittedly, the Federal Government has no jurisdiction 
to restrain combinations between individuals or corporations, ex- 
cept such as is derived under the provision of the Constitution, 
giving Congress control of interstate and foreign commerce. Thus, 
what Mr. Cleveland just last week said can not be done is an ac- 
complished fact, and the action was' brought under the Sherman 
act, a Republican measure, promised in a Republican platform, 
passed by a Republican Congress, signed by a Republican Presi- 
dent, and enforced by a little giant under the direction of the 
present Republican President. And while the case has been ap- 
pealed, it stands and holds and will remain effective until re- 
versed. 

"Nor is this all, nor the most astonishing feature of Mr. Cleve- 
land's interview. In the closing paragraph he takes no small 
pains' to explain why nothing was done during his administration, 
and by so doing endorses, in the most emphatic language, what 
has been done by his successors. Without admitting the 1 suffi- 
ciency of his explanation, it is quite gratifying to have so distin- 
guished a person unqualifiedly approve the institution, the prose- 
cution, and the result of the merger case. Listen to the explana- 
tion he gives for his own inactivity: 

" 'There was then no opportunity to take any such action as this 
merger suit. The case did not present itself. If contracts existed 
among these business combinations for the restraint of trade, they 
were kept secret and no evidence offered itself on which to act. 
At that time this merger of railroads had not been formed, so 
that there was no action of this sort to take.' 

"How unfortunate it is' for so many of us that opportunities 
never present themselves in our times. Those who lived before 
us, and those who come after us, have great opportunities. Of all 
men we are most miserable. And so Mr. Cleveland bewails his' 
misfortune, in much the same tone, if not in the same language, 
that Ben King employs: 

"Jane Jones keeps talkin' to me all the time, 

An' says you must make it a rule 
To study your lessons 'nd work hard 'nd learn, 

An' never be absent from school. 
Remember the story of Elihu Burritt, 

An' how he clum up to the top, 
Got all the knowledge 'at ever he had 

Down in a blacksmithing shop? 
Jane Jones she honestly said it was so! 
Mebby he did — 
I dunno! 
O' course what's a-keepin' me 'way from the top, 
Is' not never havin' no blacksmithing shop. 

She said "at Columbus was out at the knees 

When he first thought up his big scheme, 
An' told all the Spaniards 'nd Italians too, 

An' all of 'em said 'twas a dream. 
But Queen Isabella jest listened to him, 

'Nd pawned all her jewels o' worth, 
'Nd bought him the Santa Maria 'nd said, 

'Go hunt up the rest of the earth!' 
Jane Jones she honestly said it was so! 
Mebby he did — 
I dunno! 
Of course, that may be, but then you must allow, 
They ain't no land to discover jest now!" 

WHAT THE MERGER SUIT HAS SAVED* 

[From the Philadelphia Press, July 16, 1904.] 

What were the profits threatened by the Northern Securities 
decision? What is the saving to the country by the instituting of 
the merger suit and its judicial affirmance? The organization 
of this corporation was the outgrowth of the attempt by "com- 
munity of interest" to eliminate competition and add to railroad 
profits. "Community of interest" in four years added $155,000,- 
000 to railroad charges for freight. Last April the Interstate 
Commerce Commission proved this in a report, to the Senate. 

In 1887 the Interstate Commerce act, which was the first of 
the various measures passed for the purpose of preventing 
combination and destroying competition, began the work of re- 



194 TRUSTS AND INDUSTRIAL COMBINATIONS. 

dueing rates under its Republican Administration, From 1890 
until 1899 freight rates steadily decreased. The railroads be- 
tween 1890 and 1899 increased their tons of freight by one-half, 
and the sum received for carrying it by less than one-third, or 
two-sevenths. In other words, freight was being carried cheaper 
for the public, although more was being moved. 

The aggregate freight carried in 1890 was 636,541,61^ tons, at 
a cost of $714,464,277. By 1899 the freight had increased to 
959,763,583 tons, while the freight receipts had only risen to 
$913,737,155. As will be seen, the increase in freight was 323,- 
221,964 tons, or 50.9 per cent, and the increase of income $199, 
272,878, or 16.4 per cent 

A better comparative showing could be made, if one wished 
to force this point, by taking one of the years of extreme depres- 
sion. The year 1899 was not. In it the railroads were making a 
fair return on their capital and their business. No one was 
complaining. 

The decisions of the United States Supreme Court destroyed 
traffic agreements. "Community of interests" began. The trunk 
lines were drawn to closer relations. These had their effect on 
the railroad systems of the country. All the 186,000 miles which 
then constituted the railroad mileage of the United States be- 
came a vast web whose rates responded to the determination 
of a few great financiers in New York to make the country pay 
for its transportation. 

The next step after the "community of interest" was to be 
the "holding corporations," of which the Northern, Securities 
Company was the first example. Rates advanced from 1899 to 
1903. Aggregate freight tonnage rose to 1,221,475,948 tons, an 
increase of about one-fourth, but the freight receipts rose still 
faster. They advanced to $1,318,320,604. This was an increase 
of nearly one-half. The advance in the cost of freight to the 
people of the United States w T as $404,583,449, an increase of 
44.28 per cent, while total freight tonnage had only increased 
261,712,365 tonsi or 27.27 per cent 

If rates had remained in 1903 as they were in 1899 — and the 
railroads, as we have already said, were making money in 1899 
—stocks were rising and new bonds and shares were selling- 
shippers instead of paying $405,000,000 more would have paid 
in addition only $250,000,000. Instead they were taxed an ad 
ditional $155,000,000. This was the measure of the advance in 
rates from 1899 to 1903, a measure obtained by ascertaining how 
much the freight carried in 1903 would have cost the country if 
it had been carried at the same rate as received in 1899. 

This advance and this increased tax laid upon tne trade of the 
country were gained through the "community of interest," and 
schemes like the Northern Securities Company, which were in- 
tended to carry a step forward the "community of interest" and 
still more eliminate competition. The industries and the labor 
of the country, which had steadily improved from 1897 to 1899 
under low rates, went on under a period of enlarging business 
under higher rates. 

But the tax was fej.t. It is not possible to make $155,000,000 
in a year out of the profits of everybody who uses railroads for 
freight, as every business does, directly or indirectly, and not 
have someone feel it. The corporations gained. The shipper 
lost. When President Roosevelt's Administration attacked the 
Northern Securities combination it served notice on everybody 
concerned that this process could go on no longer. 

The corporations objected. Naturally. Under combination, 
more or less veiled — within the letter of the law, but against 
its spirit— they had slowly marked up rates until they were ob- 
taining $155,000,000 more than in 1899, with every prospect of 
adding to the tax which they were levying on the country. This 
was a stake worth fighting for. The corporations and the small 
group of able financiers who had in four years increased the 
burden of railroad freight on the country by $155,000,000 had and 
have no intention of permitting any interference with this plan 
if they can help it. 

The real question which lies behind the "trust issue," brought 
into evidence by the Northern Securities decision, is whether, 
under President Roosevelt's policy, this increase of freight rates 



TBUSTS AND INDUSTBIAL COMBINATIONS. 195 

shall be stopped, revised and reduced by allowing the play of 
natural causes through competition, or, as will take place if 
Judge Parker is elected, the increase in freight rates shall go 
on by railroads freed from opposition to their "community of 
interest" and to their consolidation. 

THE TRUSTS AND THE PROTECTIVE TARIFF. 

[Hon. William B. Allison, United States Senator, in American In- 
dustries for December, 1903.] 

It is contended that the protective policy is the basis of what 
are known as trust combinations in our country, and that if these 
are to be crippled or destroyed the most effective weapon is free 
trade in trust-made goods'; that is to say, that goods produced in 
other countries of character and quality similar to those produced 
by a trust in this country shall be placed on the free list. The 
effect of this, of course, would be to place all imported goods of 
this character on the free list, whether competitive goods' were 
made here by a trust combination or by independent factories com- 
peting with the trust, thus allowing world-wide competition in 
this class of goods. 

This plan is impossible of execution, even if otherwise effective, 
as it would lead to endless contests and conflicts in the custom 
houses and in the courts on the question of what are trust-made 
goods and what are goods of like character produced here and also 
produced abroad. 

According to the census of 1900 about 12 per cent of manufact- 
ured articles were made by what we call trusts in this country. 
That percentage has increased since 1900, but certainly does not 
now exceed 20 per cent of the total product. But if this proposi- 
tion were enacted into law those producing the remaining 80 per 
cent in competition with the trusts would be punished and crippled, 
and it may be destroyed, through no fault of their own, but by the 
action of the trusts producing the 20 per cent. 

If tariff duties are necessary to protect our producers against 
foreign competition then not only these who are in combination 
here, but also the independent manufacturer, must suffer alike 
if the necessary protection is withdrawn. Is it possible to devise 
a more effective method of destroying the protective system than 
this proposed insidious method of withdrawing protection from 
trust-made goods? 

The basis of this proposal is a false one. The tariff is not the 
foundation of these combinations, nor does it promote them in any 
material degree. Whatever their origin it cannot be found in our 
tariff laws. If it were so found then these combinations would be 
confined to those manufacturers benefited by the tariff. But it so 
happens that many of these combinations, and the largest of them, 
have no relation whatever to the tariff, but have grown up with- 
out tariff protection and wholly outside of it. 

The Standard Oil Trust is a conspicuous example of this. There 
is not now and never has been any duty on its product. As a pre- 
cautionary measure the Wilson bill of 1894 provided that if any 
country producing petroleum or its products imposed a duty upon 
our petroleum or its products, a duty of 40 per centum should be 
paid on such articles imported from that country, and this pro- 
vision, not materially modified, was retained in the Dingley law. 
But it is' of no value, and has no effect upon the trade. 

Anthracite coal has been continually on the free list under 
all protective tariffs, and even including the Dingley law, although, 
by a mistaken definition of anthracite as distinguished from bitum- 
inous coal, the Treasury Department was led to decide that a cer- 
tain class of anthracite should pay duty. About 250,000 tons of so- 
called anthracite were imported between the passage of the Ding- 
ley law and the repeal of that provision, as compared with a total 
production of 150,000,000 tons in our own country during the in- 
tervening time, of which production coal to the value of $12,000,000 
was exported to Canada. The impossibility of the small importa- 
tion having any effect upon the price of anthracite coal in our 
markets is apparent. Whatever the remedy may be against the 
anthracite combination in Pennsylvania, the tariff had nothing to 
do with its origin and progress. 

It is said there is a beef combination that is able to control 
prices and limit production because of the tariff. There is a 
duty upon live cattle imported. The repeal of this duty would help 
rather than injure this combination. The repeal of the duty on 
dressed meats would not in the slightest degree affect its control 
over the market to the extent it now has. There is no place front 
which dressed meats could be imported in competition with our 
packers. We export to Canada more cattle and meat products 
than we import from there. 

We hear something of a trust in the manufacture of agricul- 
tural implements. Our country produces' these implements in many 
places, and they are largely exported to every part of the world, 
and practically none are imported. The Wilson-Gorman bill put 
them on the free list, with no effect whatever upon the price at 
home or abroad. The present duty of 20 per centum is of no value 
to the manufacturers, and I understand they so regard it, nor 
does it affect home prices in the slightest degree. The skill in 
production and the inventive genius of our people as respects this 
class of manufactures are such that our implements' go the world 
around. The only complaint made is that France and Germany and 
other countries in Europe, and the Dominion of Canada, place a 



196 TRUSTS AND INDUSTRIAL COMBINATIONS. 

hlg-h duty upon these articles exported by us, and should Canada 
especially persist In retaining these duties It will be done at the 
cost of the farmers of Ca i Canada does not produce these 

articles to any extent. 

No industry is more important to our country than that of iron 
and steel. It has been truthfully stated by somebody that the 
wealth of a country could be largely measured by its consump- 
tion of iron and steel products. We produced in the United States 
in 1880 iron and Bteel products to the value of $660,000,000 in 
round numbers. Twenty years later we produced in value of 
these products' in round numbers $1,800,000,000, thus nearly tripling 
our product in value in twenty years, and if we could carry that 
product down to 1903 the increase would be still greater. We con- 
sumed in 1900 nearly as much pig iron as the United Kingdom, 
Germany, and France combined. These three countries are our 
principal competitors in the production of iron and steel, and also 
the principal consumers of these products outside of our country. 
Although England is a large exporter of iron and steel she also 
largely imports both. She imported from contiguous European 
States in 1900 twice as' much steel as she imported to them. No 
industry has' made such progress as that of iron and steel in 
our country. We are by far the largest producers in the world, 
and we are also the largest consumers'. 

We have for the last few years largely increased our exporta- 
tion of iron and steel, and it seems to me that, with our great 
natural resources in this regard and the competition that will 
inevitable continue in their production in our own country, we 
shall in the future still further increase our exportations or iron 
and steel. Duties on them may require adjustment because of 
changes in production and consumption. Yet the United States 
Steel Corporation, which is the largest producer, contributing more 
than one-half the total product, has substantial competition, which 
has been increased since the organization of the corporation, and 
largely increased during the last year. Prices of its products were 
abnormally increased in 1900, but they are now diminishing and 
will continue to fall. 

Effective control of trusts must be had. All parties agree that 
whatever can be done ought to be done to minirnize and remove 
as far as' possible the evils which exist because of these combina- 
tions. But it is plain that the adoption of free trade and the 
abandonment of the policy of protection is not one of these rem- 
edies; 

THE NEW YORK WORLD ON THE MERGER CASE AND THE 

WORK OF THE PRESIDENT AND ADHINISTRATION 

WITH REFERENCE THERETO. 

[From the New York World, Tuesday, March 15, 1904.] 

The decision of the Supreme Court against the Northern Se- 
curities merger is an event of vital and far-reaching importance. 

So clear, so obvious, so important are the issues involved that 
wonder grows that a final decision in a case of the first magni- 
tude was not reached until almost fourteen years after the 
passage of the Sherman act. 

What is the decision: what the circumstances that led up to 
it; what its probable effects? 

The Case. 

The first railway across the continent was necessarily a 
monopoly. As each additional line was opened the effort was 
made to prevent competition. This ettort was particularly active 
in the Northwest, where the Northern Pacific and the Great 
Northern Railroads were natural rivals. 

The Burlington and the Union Pacific were other parallel 
lines. The Northern Pacific secured control of the Burlington 
by a stock-conversion deal. To protect their interests the mas- 
ters of the Union Pacific set out to capture the Northern Pacific, 
and this led to the great Northern Pacific war and the panic of 
May 9, 1901. 

The financiers of Wall street met to restore peace and appor- 
tion the spoils, and out of their efforts grew the Northern Securi- 
ties merger, organized in November, 1901, under the laws of New 
Jersey, for the purpose of holding the stock of the Northern Pa- 
cific and Great Northern companies, including the control of the 
Burlington. It was modestly suggested that it might later take 
in the Chicago, Milwaukee & St. Paul, the Chicago & Northwest- 
ern, and probably the Chicago Great Western and Wisconsin 
Central. 

It was said that the combination was legally unassailable; 
that all the railroads of the United States might presently be 
consolidated in the hands of a few great holding companies. 

This was a menace and a challenge. 




TRUSTS AND INDUSTRIAL COMBINATIONS. 197 

The Law. 

On March 3, 1902, Attorney-General Knox, urged thereto by 
President Roosevelt, riled a petition against the combination and 
its two constituent companies in the United States Circuit Court 
of Minnesota under the Sherman Anti-Trust act of 1890, which 
provides: 

Section 1. Every contract, combination in the form of trust or 
otherwise, or conspiracy in restraint of trade or commerce, among 
the several States', or with foreign nations, is hereby declared to 
be illegal. Every person who shall make any such contract or en- 
gage in any such combination shall be deemed guilt}' of a misde- 
meanor, and on conviction thereof shall be punished by a fine not 
exceeding $5,000, or by imprisonment not exceeding one year, or by 
both said punishments, in the decision of the court. * * * 

Section 4. The several circuit courts of the United States are 
hereby invested with jurisdiction to prevent and restrain viola- 
tions of this act; and it shall be the duty of the several district- 
attorneys' of the United States, in their respective districts, under 
the direction of the Attorney-General, to institute proceedings in 
equity to prevent and restrain such violations. 

The Decree. 

The case was vigorously pushed. One week later the At- 
torney-General alleged in a bill in equity filed at St. Paul that 
the Northern Pacific and Great Northern were "the only trans- 
continental lines of railway extending across the northern tier 
of States west of the Great Lakes * * * to the Pacific Ocean, 
and were (previously) engaged in active competition for freight 
and passenger traffic"; that by the merger the defendants were 
monopolizing interstate and foreign commerce in violation of the 
Sherman act, and that the Securities Company "was not or- 
ganized in good! faith to purchase and pay for" the roads it ac 
quired, but "solely to incorporate the pooling of stocks of said 
companies." 

Mr. Knox added that if this were permitted the act of Con- 
gress could be set at naught and all the railway systems of the 
country could be "absorbed, amerged and consolidated, thus 
placing the public at the absolute mercy of the holding corpora- 
tion." 

This view was sustained on April 3 of last year by the United 
State Circuit Court of Appeals, Justice Thayer saying that Con- 
gress, after forbidding the "trusts" known at the time of the 
passage of the law: 

Evidently anticipating that the combination might be other- 
wise formed, was careful to declare that a combination in any 
other form, if in restraint of interstate trade or commerce — that is, 
if it directly occasioned or effected such restraint — should like- 
wise be deemed illegal. 

The Supreme Court: 

By a majority of five to four in the Supreme Court itself the 
decree of the Circuit Court is now confirmed. This is final. 
There is no appeal. . . 

The decision, written by Justice Harlan, states that, than the 
holding company, "no scheme or device could certainly more ef- 
fectively come within the prohibition of the Anti-Trust law." 
The law is not an interference with the right of the States to 
charter companies. The authority of Congress is supreme. 
Sweeping away by broad principles a maze of technicalities, Jus- 
tice Harlan finds that the merger is "a combination in restraint 
of interstate and international commerce, and that is enough 
to bring it under the condemnation of the act." 

If such a combination was not destroyed— 

The entire commerce of the immense territory in the northern 
part of the United States, between the Great Lakes and the Pacific 
at Puget Sound, will be at the mercy of a single holding corpora- 
tion, organized in a state distant from the people of that terri- 
tory. 

The Effect. 

Of business interests the decision is conservative, not destruc- 
tive, not obstructive. 

Because of it no wheel need cease to turn. No property is 
destroyed, no right of wealth invaded, no legitimate ambition 
assailed. The sun will rise and set as before, the rain will fall, 
the grain will grow as bravely in all that vast region which the 



198 TBUSTS AND INDUSTRIAL COMBINATIONS. 

merger sought to make subject in the important matter of trans- 
portation to one corporate will. * * * 

The Supreme Court has proved itself the protector of the 
rights of the people against trusts, as upon occasion it would 
prove the protector of the trusts themselves against unfair at- 
tack. 

Trusts, like workingmen, are entitled to the protection of the 
law as long as they remain within and under, not over and 
against the law. No man of sense expects the destruction of all 
commercial combinations. The shouting, insincere, hypocritical 
demagogue who only wishes to get power by denouncing the 
trusts is perhaps a greater public enemy than the trusts them- 
selves. 

The Future. 

Politically, the effect of the decision can hardly be exagger- 
ated. 

It will greatly strengthen President Roosevelt as a candidate. 
People will love him for the enemies he has made. Mr. Cleve- 
land lost popularity among the Democratic masses by not en- 
forcing this law. Mr. Roosevelt will gain by enforcing it. 

It cannot now be said that the Republican party is owned by 
the trusts. It cannot now be said that Mr. Roosevelt is con- 
trolled by them. His prospects of re-election were not small be- 
fore; they are brighter to-day, and, barring some act of impetu- 
ous unwisdom on his part before November, brighter they will 
remain. 

But in the last analysis it is not the President who has tri- 
umphed. It is not the court. It is not the law. It is the people 
— the plain people who elect Presidents and set up courts and 
through their representatives do ordain the laws. 

The President did what public opinion called for. The law 
itself was framed because public opinion demanded it. 

It is public opinion and the people's will that has triumphed, 
as in the end it must always triumph, in the court of last resort. 

Trust Officials as Managers of the Parker Candidacy. 

[From New York Tribune May 4, 1904.] 

David B. Hill and August Belmont, in their reorganization 
of the Democratic State Committee at Albany, last Saturday, 
seem to have established close relations with the trust officials 
of New York and New Jersey, and especially with the American 
Sugar Refining Company. The declaration of the platform adopt- 
ed by the Albany convention on April 18 in favor of "a reasona- 
ble revision of the tariff" and free raw material becomes illumi- 
nating, in view of the election of Cord Meyer to be chairman of 
the Democratic State Committee and Senator P. H. McCarren to 
be chairman of the executive committee, which will raise and 
spend the money during the campaign. 

Mr. Meyer is a capitalist, and was one of the original stock- 
holders in the first organization of the sugar trust. He was a 
member of the firm of Dick & Meyerf with refineries in Brook- 
lyn, that was swallowed in the sugar trust's first organization. 
It is to be presumed that Mr. Meyer stn retains his interests in 
the sugar trust because of the large dividends it has regularly 
paid. During the great struggle over the sugar schedule in the 
Wilson bill in the first year of Cleveland's second administration 
the statement was made that the sugar trust had contributed 
large sums of money to the Democratic campaign fund of 1892. 
not only to the national committee but to the State committees 
of New York and Connecticut, in the expectation of favors yet 
to come. Mr. Havemeyer practically admitted its truth by re- 
fusing to testify to specific amounts, but he did testify that he 
gave the Republicans nothing, because he could see no advan- 
tage in so doing. 

It was charged by the Republicans that the sugar trust had 
received a promise rrom the Democrats that it would have the 
privilege of writing its own sugar schedule. It was widely pub- 
lished at the time that Cord Meyer waited upon members of the 
Cabinet and asked whether the interests of the sugar trust were 



TRUSTS AND INDUSTRIAL COMBINATIONS. 199 

to be looked after. It was also widely published that Mr. Have- 
meyer himself submitted to Secretary Carlisle the sugar schedule 
which was taken to the Senate committee and substituted for 
the schedule in the Wilson bill which the Senate committee had 
prepared. 

In the end the sugar trust had its way, and there was a great 
scandal surrounding the whole negotiation, including the specu- 
lation in sugar stocks by United States Senators, as disclosed 
by the investigation, when Mr. Havemeyer, John E. Searles and 
Elverton R. Chapman were reported to the district attorney for 
being in contempt of the Senate in refusing to answer questions. 
Mr. Havemeyer and Mr. Searles were released by the court on 
the ground that any contributions they may have made to the 
Democratic campaign fund could not possibly have concerned 
the election of any of its members, notwithstanding the fact that 
in 1892 there were elected legislatures which sent Edward Mur- 
phy, Jr., to the United States Senate from New York and James 
Smith, Jr., from New Jersey. 

Senator McCarren, who has become the chairman of the New 
York Democratic State executive committee, is the champion 
defender of the sugar trust in public life. In 1897 there was an 
investigation of the trust question by a joint committee of the 
New York Senate and Assembly, of which Senator Clarence 
Lexow was chairman. Senator McCarren was the Democratic 
member of this committee on the part of the Senate. 



The man who hy the use of his capital develops a great mine; 
the man who by the use of his capital builds a great railroad; the 
man who by the use of his capital, either individually or joined 
with others like him, does any great legitimate business enterprise, 
confers a benefit, not a harm, upon the community, and is entitled 
to be so regarded. He is entitled to the protection of the law, and 
in return he is to be required himself to obey the law. The law is 
no respecter of persons. The law is to be administered neither for 
the rich man as such nor for the poor man as such. It is to be 
administered for every man, rich or poor, if he is an honest and 
law-abiding citizen; and it is to be invoked against any man, rich 
or poor, who violates it. without regard to which end of the social 
scale he may stand at; without regard to whether his ofl'eii.se takes 
the form of greed and cunning or the form of physical violence. 
In either case, if he violates the law, the law is to be invoked 
against him; and in so invoking it I have the right to challenge 
the support of all good citizens and to demand the acquiescence of 
every good man. ,1 hope I will have it; but, once for all, I wish it 
understood that even if I do not have it I shall enforce the law. — 
President Roosevelt at Butte, Mont., May 27, 1903. 

Where possible, it is always better to mediate before the strike 
begins than to try to arbitrate when the fight is on and both sides 
have grown stubborn and bitter. — President Roosevelt at Labor 
Day picnic, Chicago, Sept. 3, 1900. 

Our average fellow-citizen is a sane and healthy man, who be- 
lieves in decency and has a -wholesome mind. He therefore feels 
an equal scorn alike for the man of -wealth guilty of the mean and 
base spirit of arrogance toward those who are less well off, and 
for the man of small means -who in his turn either feels or seeks 
to excite in others the feeling of mean and base envy for those -who 
are better off. — President Roosevelt at Syracuse, N. Y., Sept. 7, 1903. 

The duties of peace are with us always; those of war are but 
occasional; and -with a nation as with a man, the -worthiness of 
life depends upon the -way in -which the everyday duties are done. 
The home duties are the vital duties. — President Roosevelt at Sher- 
man statue unveling, Oct. 15, 1903. 

Above all the administration of the government, the enforce- 
ment of the laws, must be fair and honest. The laws are not to be 
administered either in the interest of the poor man or the interest 
of the rich man. They are simply to be administered Justly.— 
President Roosevelt at Charleston, S. C, April 9, 1902. 



200 



LABOR, WAGES, AND PRICES. 



LABOR, WAGES, AND PRICES. 

LABOR CONDITIONS UNDER REPUBLICAN AND DEMOCRATIC ADMINIS- 

TUAI'IONS. 

The only way in which a fair idea may be obtained of the 
actual conditions of labor at any time is by careful, impartial In- 
vestigation. This fact was recognized when the United States 
Government and the governments of most of the different states 
of the Union and of the countries of Europe established bureaus 
of labor statistics. 

The United States Bureau of Labor in its bulletin for July, 
L804j ((/) published the results of an extensive investigation into 
the wage conditions in leading industries throughout the country 
during the years 1890 to 1903. To obtain this information special 
agents of the Bureau of Labor were sent to representative estab- 
lishments which have existed during that entire period to copy 
directly from the pay rolls the figures showing the number of 
persons employed, the average wages paid, and the hours worked 
per week. This investigation was the most comprehensive of its 
kind ever undertaken by any government. As no figures were 
used unless obtained from establishments which could furnish 
all the information for each year of the period, the results are 
comparable in ercry detail, and as they have been taken directly 
from the payrolls of the establishedments they are believed to be 
entirely trustworthy. 

The following tables compiled from the above mentioned July 
bulletin, show in actual and relative figures the average number 
of employees, the average wages per hour, and the average num- 
ber of hours worked per week from 1890 to 1903, for each 
of 13 leading occupations. It must be remembered that the 
figures are for identical establishments, the number of which is 
given at the head of each table. 

To make the study of the table easier the Bureau of Labor 
computed a relative number to accompany each actual number. 
While all comparisons might have been made with 1890 or any 
other year, it was thought best to take as a basis for comparison, 
or 100.0, not any one year, but the average during the ten years 
from 1890 to 1899, owing to the fact that the conditions in any 
one year might be abnormal. On the first line, therefore, of the 
table given below (for blacksmiths) appears the number 576, 
which was the average number employed during the ten years 
from 1890 to 1899 in the 166 identical establishments. In the 
second column is the relative number 100.0, indicating that the 
number 576 is taken as the basis, or 100.0. In the second line, 
showing the number of employees in 1890, is given the relative 
number 99.5, indicating that in 1890 the number of employees in 
the 166 establishments was 99.5 per cent of the average number 
employed during the ten-year period from 1890 to 1899. The 
other relative figures may be used in a similar manner. 

Blacksmiths in 166 identical establishments. 
[Averag-e 1890-1899-100.0.] 





Employees. 


Wages per hour. 


Hours per 
week. 


Year. 


Actual 
No. 


Rela- 
tive 
No. 


Actual. 


Rela- 
tive. 


Actual 
No. 


Rela- 
tive 
No. 


Av. 1890-99 


576 
573 
579 
583 
586 
510 
541 
548 
541 
635 
665 
695 
753 
802 
818 


100.0 
99.5 
100.5 
101.2 
101.7 
88.5 
93.9 
95.1 
93.9 
110.2 
115.5 
120.7 
130.7 
139.2 
142.0 


$0.2639 
.2677 
.2681 
.2672 
.2677 
.2611 
.2602 
.2643 
.2604 
.2587 
.2637 
.2685 
.2757 
.2844 
.2962 


100.0 
101.4 
101.6 
101.3 
101.4 
98.9 
98.6 
100.2 
98.7 
98.0 
99.9 
101.7 
104.5 
107.8 
112.2 


59.09 
59.41 
59.20 
59.37 
59.03 
58.68 
59.18 
58.93 
58.96 
59.20 
58.98 
58.87 
57.78 
57.17 
56.65 


100.0 


1890 


100.5 


1891 


100.2 


1892 


100.5 


1893 


99.9 


1894 


99.3 


1895 


100.2 


1896 


99.7 


1897 


99.8 


1898 


100.2 


1899 


99.8 


1900 


99.6 


1901 


97.8 


1902 


96.8 


1903 


95.9 



a The bi-monthly bulletins of the 
lished for free distribution and can be 
the bureau. 



Bureau of Labor are pub- 
obtained on application to 



LABOR, WAGES, AND PRICES. 



201 



Boilermakers in 97 identical establishments. 
[Average 1890-1899-100.0.] 





Employees. 


Wages per hour. 


Hours per 
week. 


Year. 


Actual 
No. 


Rela- 
tive 
No. 


Actual 


Rela- 
tive. 


Actual 
No. 


Rela- 
tive 
No. 


Av. 1890-99 


1263 
1336 
1291 
1327 
1280 
1105 
1136 
1236 
1197 
1354 
1369 
1477 
' 1585 
1624 
1700 


100.0 
105.8 
102.2 
105.1 
101.3 
87.5 
89.9 
97.9 
94.8 
107.2 
108.4 
116.9 
125.5 
' 128.6 
134.6 


$0.2609 
.2594 
.2577 
.2585 
.2583 
.2614 
.2629 
.2626 
.2607 
.2617 
.2654 
.2773 
.2794 
.2800 
.2848 


100.0 
99.4 
98.8 
99.1 
99.0 
100.2 
100.8 
100.7 
99.9 
100.3 
101.7 
106.3 
107.1 
107.3 
109.2 


58.55 
59.25 
59.23 
58.88 
58.39 
58.83 
58.47 
58.02 
58.11 
58.30 
58.06 
57.36 
56.82 
56.33 
56.24 


100.0 


1890 

1891 

1892 


101.2 
101.2 
100.6 


1893 


99.7 


1894 

1895 


100.5 
99.9 


1896 

1897 

1898 

1899 


99.1 
99.2 
99.6 
99.2 


1900 

1901 

1902 

1903 


98.0 
97.0 
96.2 
96.1 



Bricklayers in 212 identical establishments. 

[Average 1890-1899-100.0.] 



Av. 1890-99 
1890 
1891 
1892, 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900, 
• 1901 
1902 



4355 


100.0 


4422 


101.5 


4892 


112.3 


4967 


114.1 


4535 


104.1 


4055 


93.1 


3841 


88.2 


3998 


91.8 


4010 


92.1 


4150 


95.3 


4675 


107.3 


4576 


105.1 


5142 


118.1 


4781 


109.8 


5064 


116.3 



$0.4387 


$100.0 


51.57 


.4316 


98.4 


53.22 


.4365 


99.5 


52.80 


.4431 


101.0 


52.19 


.4436 


101.1 


51.63 


.4325 


98.6 


51.96 


.4367 


99.5 


51.56 


.4337 


98.9 


51.50 


.4361 


99.4 


51.11 


.4331 


98.7 


50.47 


.4597 


104.8 


49.24 


.4672 


106.5 


49.32 


.4912 


112.0 


48.62 


.5313 


121.1 


48.27 


.5471 


124.7 


47.83 



Carpenters in 221 identical establishments. 
[Average 1890-1899-100.0.] 



Av. 1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 



5655 


100.0 


5923 


104.7 


6231 


1102 


6461 


114.3 


5528 


97.8 


5049 


89.3 


5021 


88.8 


5413 


95.7 


5403 


95.5 


5402 


95.5 


6120 


108.2 


6336 


112.0 


6660 


117.8 


6906 


122.1 


6580 


116.4 



$0. 



2751 
2713 
2730 
2825 
2744 



.2740 
.2748 
.2790 



.3190 
.3403 
.3594 



100.0 
98.6 
99.2 

102.7 
99.7 
97.9 
97.9 



101.4 
103.2 
110.8 
116.0 
123.7 
130.6 



54.85 
55.94 
55.56 
55.12 
55.22 
55.27 
55.05 
54.67 
54.20 
54.02 
53.42 
51.86 
50.74 
49.70 
49.41 



Compositors in 91 identical establishments. 

[Average 1890-1899-100.0.] 



Av. 1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 



1148 


100.0 


$0.3939 


100.0 


52.53 


1508 


131.4 


.3980 


101.0 


53.15 


1530 


133.3 


.3997 


101.5 


52.62 


1494 


130.1 


.4013 


101.9 


52.58 


1327 


115.6 


.3933 


99.8 


53.13 


1055 


91.9 


.3796 


96.4 


52.75 


915 


79.7 


.3827 


97.2 


52.73 


883 


76.9 


.3897 


98.9 


52.58 


928 


80.8 


.3925 


99.6 


52.47 


898 


78.2 


.3934 


99.9 


52.06 


944 


82.2 


.4086 


103.7 


51.26 


969 


84.4 


.4071 


103.4 


51.09 


959 


83.5 


.4252 


107.9 


50.37 


954 


83.1 


.4352 


110.5 


49.96 


1009 


87.9 


.4467 


113.4 


49.81 



a The decrease in the number of compositors employed is due 
largely to the creation of the new occupation "Linotype Operators" 
upon the introduction of the linotype. 



202 



LABOR, WAGES, AND PRICES. 



Hodcarriers in 250 identical establishments. 
[Averagre 1890-1899-100.0.] 



Year. 



Av. 1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 



Employees. 


Wages per hour. 


Hours per 
week. 


Actual 
No. 


Rela- 
tive 
No. 


Actual. 


Rela- 
tive. 


Actual 
No. 


Rela- 
tive 
No. 


4242 


100.0 


$0.2329 


100.0 


51.60 


100.0 


4.W7 


102.0 


.2259 


97.0 


52.78 


102.3 


46*4 


109.5 


.2248 


96.5 


52.54 


101.8 


4894 


115.4 


.2314 


99.4 


51.81 


100.4 


4455 


105.0 


.2325 


99.8 


51.64 


100.1 


3698 


87.2 


J303 


98.9 


52.03 


100.8 


3844 


90.6 


.2320 


99.6 


51.53 


99.9 


3959 


93.3 


.2335 


100.3 


51.45 


99.7 


3996 


94.2 


.2322 


99.7 


51.42 


99.7 


3920 


92.4 


.2343 


100.6 


51.01 


98.9 


4685 


110.4 


.2518 


108.1 


49.79 


96.5 


4417 


104.1 


.2498 


107.3 


49.79 


96.5 


5097 


120.2 


.2546 


109.3 


49.35 


95.6 


5062 


119.3 


.2676 


114.9 


48.56 


94.1 


5242 


123.6 


.2863 


122.9 


47.98 


93.0 



Ironmoldcrs in 183 identical establishments. 

[Average 1890-1899-100.0.] 



Av. 1890-99 



1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 



2974 


100.0 


$0.2526 


100.0 


59.31 


2962 


99.6 


.2540 


100.6 


59.51 


2952 


99.3 


.2565 


101.5 


59.60 


3032 


102.0 


.2548 


100.9 


59.49 


3181 


107.0 


.2557 


101.2 


59.18 


2519 


84.7 


.2472 


97.9 


59.10 


2781 


93.5 


.2476 


98.0 


59.29 


2909 


97.8 


.2507 


99.2 


59.24 


2732 


91.9 


.2525 


100.0 


59.17 


3234 


108.7 


.2503 


99.1 


59.34 


3439 


115.6 


.2568 


101.7 


59.14 


3790 


127.4 


.2694 


106.7 


59.07 


3793 


127.5 


.2739 


108.4 


58.47 


3968 


133.4 


.2894 


114.6 


57.65 


42x8 


141.8 


.3036 


120.2 


56.80 



Laborers in 1^6 identical establishments. 

[Average 1890-1899-100.0.] 



Av. 1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 



4460 


100.0 


$0.1467 


100.0 


58.84 


5118 


114.8 


.1507 


102.7 


59.02 


4861 


109.0 


.1511 


103.0 


59.02 


4812 


107.9 


.1519 


103.5 


59.02 


4516 


101.3 


.1493 


101.8 


58.80 


4128 


92.6 


.1419 


96.7 


58.76 


3796 


85.1 


.1440 


98.2 


58.88 


4018 


90.1 


.1415 


96.5 


58.92 


4000 


89.7 


.1445 


98.5 


58.80 


4524 


101.4 


.1466 


99.9 


58.44 


4822 


108.1 


.1457 


99.3 


58.71 


5275 


118.3 


.1461 


99.6 


58.27 


4648 


104.2 


.1585 


108.0 


57.98 


5317 


119.2 


.1644 


112.1 


56.66 


5082 


113.9 


.1676 


114.2 


56.13 



Machinists in 218 identical establishments. 
[Average 1890-1899-100.0.] 



Av. 1890-99 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 



5414 


100.0 


$0.2404 


100.0 


59.12 


5302 


97.9 


.2413 


100.4 


59.52 


5414 


100.0 


.2435 


101.3 


59.47 


5409 


99.9 


.2459 


102.3 


59.24 


5677 


104.9 


.2450 


101.9 


59.03 


4339 


80.1 


.2347 


97.6 


59.07 


4917 


90.8 


.2347 


97.6 


59.08 


5176 


95.6 


.2397 


99.7 


59.01 


5059 


93.4 


.2397 


99.7 


58.96 


6058 


111.9 


.2377 


98.9 


59.11 


6793 


125.5 


.2417 


100.5 


58.72 


7088 


130.9 


.2485 


103.4 


58.56 


7646 


141.2 


.2555 


106.3 


57.37 


8221 


151.8 


.2646 


110.1 


56.56 


8576 


158.4 


.2709 


112.7 


56.12 



LABOR, WAGES, AND PRICES. 



203 



Painters in 203 identical establishments. 
[Average 1890-1899-100.0.] 





Employees. 


Wages per hour. 


Hours per 
week. 


Year. 


Actual 
No. 


Rela- 
tive 
No. 


Actual 


Rela- 
tive. 


Actual 
No. 


Rela- 
tive 
No. 


Av. 1890-99 


3676 
3541 
3708 
3877 
3666 
3450 
3460 
3648 
3737 
3723 
3953 
4089 
■4284 
4254 
4021 


100.0 
96.3 
100.9 
105.5 
99.7 
93.9 
94.1 
99.2 
101.7 
101.3 
107.5 
111.2 
116.5 
115.7 
109.4 


$0.2763 
.2680 
.2712 
.2747 
.2795 
.2737 
.2720 
.2742 
.2778 
.2827* 
.2892 
.3054 
.3170 
.3303 
.3450 


100.0 

97.0 

98.2 

99.4 

101.2 

•99.1 

98.4 

99.2 

100.5 

102.3 

104.7 

110.5 

114.7 

119.5 

124.9 


53.82 
55.23 
54.86 
54.43 
53.86 
54.01 
53.87 
53.61 
53.28 
52.79 
52.27 
50.91 
49.85 
49.27 
48.89 


100.0 


1890 


102.6 


1891 


101.9 


1892 


101.1 


1893 


100.1 


1894 

1895 


100.4 
100.1 


1896 


99.6 


1897 


99.0 


1898 


98.1 


1899 


97.1 


1900 


94.6 


1901 


92.6 


1902 


91.5 


1903 


90.8 







Plumbers in 221 identical establishments. 
[Average 1890-1899-100.0.] 



Av. 1890-99 



1898. 
1899. 
1900. 
1901. 
1902. 
1903. 



1380 
1368 
1384 
1427 
1377 
1303 
1301 
1365 
1367 
1443 
1466 
1523 
1633 
1627 
1595 



100.0 


$0.3550 


100.0 


53.23 


99.1 


.3464 


97.6 


54.33 


100.3 


.3488 


98.3 


54.09 


103.4 


.3511 


98.9 


53.86 


99.8 


.3552 


100.1 


53.36 


94.4 


.3515 


99.0 


53.28 


94.3 


.3546 


99.9 


53.08 


98.9 


.3505 


98.7 


52.86 


99.1 


.3598 


101.4 


52.67 


104.6 


.3638 


102.5 


52.53 


106.2 


.3684 


103.8 


52.28 


110.4 


.3811 


107.4 


51.40 


118.3 


.3935 


110.8 


50.77 


117.9 


.4122 


116.1 


49.52 


115.6 


.4371 


123.1 


48.97 



Stonecutters (granite) in 12 identical establishments. 
[Average 1890-1899-100.0.] 



1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 



775 


100.0 


$0.3628 


100.0 


52.71 


938 


121.0 


.3730 


102.8 


52.73 


880 


113.5 


.3803 


104.8 


52.54 


882 


113.8 


.3750 


103.4 


52.70 


778 


100.4 


.3618 


99.7 


53.12 


705 


91.0 


.3593 


99.0 


52.84 


685 


88.4 


.3611 


99.5 


52.67 


709 


91.5 


.3590 


99.0 


52.77 


678 


87.5 


.3524 


97.1 


52.99 


698 


90.1 


.3467 


95.6 


53.04 


798 


103.0 


.3594 


99.1 


51.70 


901 


116.3 


.3923 


108.1 


50.20 


852 


109.9 


.3868 


106.6 


49.96 


856 


110.5 


.3938 


108.5 


49.67 


900 


116.1 


.4225 


116.5 


48.67 



Masons (stone) in 115 identical establishments. 
[Average 1890-1899-100.0.] 



kv. 1890-99 



1891. 
1892. 
1893. 
1894. 
1895 
1896 
1897 
1898 
1899 
1900 
1901 



886 


100.0 


$0.3617 


100.0 


53.83 


947 


106.9 


.3722 


102.9 


54.54 


1021 


115.2 


.3732 


103.2 


54.51 


984 


111.1 


.3673 


101.5 


54.49 


898 


101.4 


.3644 


100.7 


54.17 


799 


90.2 


.3440 


95.1 


54.34 


798 


90.1 


.3485 


96.4 


54.05 


828 


93.5 


.3547 


98.1 


53.97 


796 


89.8 


.3628 


100.3 


53.05 


932 


105.2 


.3581 


99.0 


52.43 


860 


97.1 


.3719 


102.8 


52.73 


935 


105.5 


.3788 


104.7 


51.89 


927 


104.6 


.4007 


110.8 


51.23 


954 


107.7 


.4304 


119.0 


50.19 


1073 


121.1 


.4486 


124.0 


49.54 



204 



LABOR, WAGES, AND PRICES. 



The following tables show the percentage of increase or de 
crease in the number of employees, average wages per hour ant 
average hours worked per week in the 13 leading occupations 
iu 1903, compared with each preceding year from 1890 to 1892. 

[The figures in this table give under each year the per cent 
of increase or decrease in wages per hour (indicated by + and 
— ) which the 1903 figures show as compared with the year speci- 
fied. For example, under the year 1898 opposite blacksmiths ap- 
pears + 14.5; this shows that the wages of blacksmiths were 
14.5 per cent higher in 1903 than in 1898. Under the year 1895 
opposite carpenters appears + 33.5; this shows that the wages of 
carpenters were 33.5 per cent higher in 1903 than in 1895 etc 
etc.] ' '' 



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[The figures in this table give under each year the per cent of 
increase or decrease in number of employees (indicated by + and 
— ) which the 1903 figures show as compared with the year 
specified. For example, under the year 1894 opposite blacksmiths 
appears +60.4; this shows that the number of blacksmiths em- 
ployed in the 16G establishments covered by the figures was 
60.4 per cent greater in 1903 than in 1894. Under the year 1894 
opposite machinists appears + 97.6; this shows that the number 
of machinists employed was 97.6 per cent greater in 1903 than 
iu 18134, etc., etc.] 



LABOR, WAGES, AND PRICES. 



205 



[The figures in this table give under each year the per cent of 
increase or decrease in the average hours of labor per week 
(indicated by + and — ) which the 1903 figures show as compared 
with the year specified. For example, under the year 1890 oppo- 
site blacksmiths appear — 4.6; this shows that the weekly 
hours of work in 1903 were 4.6 per cent less than in 1890. Op- 
posite carpenters under the year 1890 is seen — 11.7, showing 
that the weekly hours of carpenters decreased 11.7 per cent be- 
tween 1890 and 1903, etc., etc.] 



i 



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gas efts gsg-sS Si 

These figures show that during the administrations of Presi- 
dents McKinley and Roosevelt there were more persons em 
ployed in industrial establishments, and higher wages were paid 
|to employees than during the period of Democratic rule. 

Taking up each occupation separately for discussion, we find 
jthat there were 49.3 per cent, more blacksmiths employed in the 
teame 166 establishments in 1903 than in 1896, and that the average 
wages per hour of these blacksmiths were 12.1 per cent, higher 
in 1903 than in 1896. 

There were 37.5 per cent, more boiler makers employed in the 
Same 97 establishments in 1903 than in 1896, and the average 
tvages per hour of these boiler makers were 8.5 per cent, higher. 

There were 26.7 per cent more bricklayers employed in the 
same 212 establishments in 1896 than in 1903, and these brick- 
layers received an average of 26.1 per cent more wages per 
hour. 

There were 21.6 per cent more carpenters in the same 227 

Fstablishments in 1903 than in 1896, and they received 31.2 per 
ent more wages per hour. 



206 LABOR, WAGES, AND PRICES. 

There were 14.S per cent more compositors in the same 91 
establishments in 1903 than in 1896, and they received an average 
of 14.G per cent more wages. 

The same 250 establishments employed 32.4 per cent more hod] 
carriers in 1903 than in 1890, and paid them an average of 22.9 
per cent more wages per hour. 

The same 183 establishments employed 45 per cent more iron 
molders in 1903 than in 1890, and paid them 21.1 per cent more) 
wages per hour. 

The same 146 establishments employed 26.5 per cent more day 
laborers in 1903 than in 1896, and gave them 18.4 per cent more 
wages per hour. 

The same 218 establishments employed 65.7 per cent more ma- 
chinists in 1903 than in 1896, and paid them 13 per cent more 
wages per hour. 

The same 115 establishments employed 29.6 per cent more 
stone masons in 1903 than in 1896, and paid them 26.5 per cent 
more wages per hour. 

The same 203 establishments employed 10.2 per cent more 
painters in 1903 than in 1896, and gave them 25.8 per cent more 
wages per hour. 

The same 221 establishments employed 16.8 per cent more 
plumbers in 1903 than in 1896, and paid them 24.7 per cent more 
wages per hour. 

The same 72 establishments employed 26.9 per cent more 
stone cutters in 1903 than in 1896, and gave them 17.7 per cen 
more wages per hour. 

If these figures are representative of labor conditions generally 

for the occupations given, and there is no reason why they should 

not be, they show the following interesting facts: 

Employment. 

For every 100 blacksmiths employed in 1896 there were 149 
blacksmiths employed in 1903; for every 100 boiler makers em 
ployed in 1896 there were 137 employed in 1903 ; for every 10(1 
bricklayers employed in 1896 there were 127 employed in 1903 a 
for every 100 carpenters employed in 1896 there were 122 emA 
ployed in 1903 ; for every 100 compositors employed in 1896 there 
were 114 employed in 1903; for every 100 hod carriers employed 
in 1896 there were 132 employed in 1893; for every 100 iron 
molders employed in 1896 there were 145 employed in 1903 ; for 
every 100 day laborers employed in 1896 there were 126 employed 
in 1903; for every 100 machinists employed in 1896 there were 
166 employed in 1903 ; for every 100 stone masons employed in 
1896 there were 130 employed in 1903 ; for every 100 house painters 
employed in 1896 there were 110 employed in 1903 ; for every 100 
plumbers employed in 1896 there were 117 employed in 1903 ; for 
every 100 stone cutters employed in 1896 there were 127 em-| 
ployed in 1903. 

Wages. 

For every dollar paid to a blacksmith in 1896, $1.12 werej 
paid in 1903 for the same amount of labor; for every dollar paid 
to a boiler maker in 1896, $1.08% were paid in 1903; for every 
dollar paid to a bricklayer in 1896, $1.26 were paid in 1903; 
for every dollar paid to a carpenter in 1896, $1.31 were paid 
in 1903; for every dollar paid to a compositor in 1896, $1.14% 
were paid in 1903; for every dollar paid to a hod-carrier in 1896, 
$1.22% were paid in 1903; for every dollar paid to an iron 
molder in 1896, $1.21 were paid in 1903; for every dollar paid 
to a laborer in 1896, $1.18% were paid in 1903; for every 
dollar paid to a machinist in 1896, $1.13 were paid in 1903; 
for every dollar paid to a stone mason in 1896, $1.26% were paid 
in 1903; for every dollar paid to a painter in 1896, $1.26 
were paid in 1903; for every dollar paid to a plumber in 1896, 
$1.24% were paid in 1903; for every dollar paid to a stone cutter 
in 1896, $1.17% were paid in 1903. 

The 13 occupations for which figures have been shown in de- 
tail are among the great representative occupations that are to 
be found in every section of the country. There are also many 
occupations that are very important in certain particular sec- 
tions of the country. Figures for 519 such occupations are given 
in detail in the Bulletin of the Bureau of Labor from which the 



LABOR, WAGES, AND PRICES. 



figures here quoted are taken, but the limited space in this book 
will not permit a reprint of all occupations. 

In the Bulletin named the figures for the several occupations 
of each of the industries represented are also combined to form 
a summary for each industry, thus giving an opportunity to 
study the figures for each industry as a whole. 

The summaries for a few important industries are here 
reproduced, namely, bar iron, boots and shoes, cigars/ cotton 
goods, and lumber. The explanation given of the preceding 
tables applies, to these tables as well. 

BAB IBON INDUSTBY. 





Employees. 


Hours per week. 


Wages per hour. 






Per cent of in- 




Per cent of in- 




P^r cent of 






crease (+) or 




crease (+) or 




increase (+) 


Year. 


Relative 


decrease (— ) 
in 1903 as 


Relative 
number. 


decrease (— ) 
in 1903 as 


Relative. 


or decrease 
(— ) in 1903 as 




number. 


compared 


compared 




compared 






with year 




with year 




with year 






specified. 




specified. 




specified. 


1890 . . . 


99.4 




- 9.9 


102.7 


—4.2 


110.3 




-23.8 


1891 . . . 


98.4 




-11.0 


101.6 


—3.1 


105.0 




-30.0 


1892 . . . 


98.3 




-11.1 


101.8 


—3.3 


100.0 




-36.5 


1893 . . . 


106.9 




- 3.1 


101.4 


—3.0 


95.7 




-42.6 


1894 . . . 


100.2 




-9.0 


101.3 


—2.9 


90.1 


—51.5 


1895 . . . 


103.7 




- 5.3 


100.7 


—2.3 


91.6 


--49.0 


1896... 


93.9 




-16.3 


101.0 


—2.6 


99.3 




-37.5 


1897 . . . 


97.7 




-11.8 


97.1 


+1.3 


98.0 




-39.3 


1898 . . . 


99.7 




- 9.5 


96.6 


+1.9 


96.3 




-41.7 


1899 . . . 


101.6 




- 7.5 


95.9 


+2.6 
+1.1 


113.7 




-20.1 


1900... 


108.9 




- .3 


97.3 


118.2 


+15 




100 7 




- 8.4 


98.4 




119.7 


- 


-14 


1902 .. . 


104.1 




h 4.9 


98.8 


— .4 


132.9 


+ 2.7 


1903 


109.2 




98.4 




136.5 













CIGAB INDUSTBY. 









BOOT AND SHOE INDUSTBY. 








1890 . . . 


77.2 


j 


-68.9 


100.2 


—3.6 


97.9 




-18.1 


1891 . . . 


80.0 


- 


-63.0 


100.8 


—4.2 


96.2 




-20.2 


1892 . . . 


86.4 


- 


-50.9 


100.5 


—3.9 


98.2 




-17.7 


1893 . . . 


97.1 


- 


-34.3 


100.1 


—3.5 


100.5 




-15.0 


1894 . . . 


99.0 




-31.7 


99.9 


—3.3 


99.5 




-16.2 


1895 . . . 


103.2 




-26.4 


99.9 


—3.3 


100.6 




-14.9 


1896 . . . 


110.5 




-18.0 


99.8 


—3.2 


100.7 




-14.8 


1897 . . . 


111.3 




-17.2 


99.7 


—3.1 


102.5 




-12.8 


1898 . . . 


111.3 


- 


-17.2 


99.6 


—3.0 


101.8 


- 


-13.6 


1899 . . . 


118.4 




-10.1 


99,5 


—2.9 


102.3 


- 


f-13.0 
f- 9.8 


1900... 


123.2 




- 5.8 


99.0 


—2.4 


105.3 


- 


1901 .. . 


127.7 


- 


-2.1 


99.2 


—2.6 


105.2 


- 


H 9.9 
-6.3 


1902 . . . 


124.0 


- 


- 5.2 


98.0 


—1.4 


108.8 


- 


1903 . . . 


130.4 




96.6 




115.6 











1890... 


76.0 


j 


-56.3 


100.1 




-1.3 


100.3 




hl6.6 


1891 ... 


85.2 




-39.4 


99.6 




-1.8 


100.6 




-16.2 


1892... 


90.3 




-31.6 


99.2 




-2.2 


99.6 




17.4 


1893 . . . 


100.5 




-18.2 


99.7 




-1.7 


100.0 




-16.9 


1894 . . . 


103.5 




-14.8 


99.9 




-1.5 


99.0 




-18.1 


1895 . . . 


109.9 




- 8.1 


99.8 




-1.6 


97.2 


+20.3 
+18.6 


1896 . . . 


95.2 




-24.8 


100.4 




-1.0 


98.6 


1897 . . . 


107.4 




-10.6 


100.0 




-1.4 


102.4 




-14.2 


1898 . . . 


107.7 




-10.3 


100.3 




-1.1 


101.1 




-15.6 


1899 . . . 


119.9 


— .9 


101.0 




- .4 


101.3 




-15.4 


1900... 


93.9 


+26.5 


99.8 




-1.6 


100.8 




-16.0 


1901 .. . 


106.1 


+11.9 


100.6 




- .8 


112.5 




- 3.9 


1902... 


116.0 


+ 2.4 


100.9 




- .5 


110.0 


- 


-6.3 


1903 .. 


118.8 




101.4 




116.9 



















COTTON GOODS INDUSTBY. 








1890 . . . 


87.8 




-22.1 


99.9 


—0.9 


102.8 




[-19.7 


1891 . . . 


98.3 




-9.1 


100.7 


—1.7 


98.9 




-24.5 


1892 . . . 


95.8 




-11.9 


101.2 


—2.2 


100.2 




-22.9 


1893 . . . 


98.2 




- 9.2 


99.9 


— .9 


103.5- 




-18.9 


1894 . . . 


96.1 




-11.6 


98.6 


+ .4 


96.8 




-27.2 


4895 . . . 


94.8 




-13.1 


100.0 


—1.0 


96.9 




-27.0 


1896 . . . 


98.8 




- 8.5 


99.5 


— .5 


104.8 




-17.5 


1897 . . . 


104.6 




- 2.5 


99.4 


— .4 


101.1 




L-21. 8 


1898 . . . 


112.5 


— 4.7 


100.3 


—1.3 


99.9 




-23.2 


1899 . . . 


112.1 


— 4.4 


100.4 


—1.4 


97.7 




-26.0 


1900... 


115.5 


— 7.2 


100.2 


—1.2 


109.1 




-12.8 


1901 ... 


109.0 


— 1.7 


100.0 


—1.0 


110.3 




-11.6 


1902... 


117.2 


— 8.5 


99.2 


— .2 


116.2 




- 5.9 


1903 . . . 


107J3 




99.0 




123.1 













-ZUK 



LABOR, WAGES, AND PRICES. 



1ATMHKU INDUSTRY. 





Employees. 


Hours per w<< k. 


Wajres per hour. 






Per cent of in- 




Per cent of in- 




Per cent of 


Year. 




crease (+) or 




crease (+) or 




increase (+ ) 


Relative 


decrease (— ) 


Relative 
number. 


decrease (— ) 




or decrease 




Dumber. 


to, 1903 as 


in 1903 as 


Relative. 


(— ) in 1 903 as 






compared 


compared 




compared 






witii year 




with year 




with year 






speciiieil. 




speciiied. 




specified. 


1890.... 


94.2 




f-32.6 


100.4 


—2.1 


102.8 




-10.2 


1891.... 


95.7 




r30.5 


100.2 


—1.9 


102.4 




-10.6 


1892.... 


96.1 




-30.0 


100.2 


—1.9 


102.1 




-11.0 


1893.... 


95.6 




-30.6 


99.7 


—1.4 


101.7 




-11.4 


1894.... 


95.3 




-31.1 


99.7 


—1.4 


97.8 




-15.8 


1895.... 


96.3 




-29.7 


100.1 


—1.8 


97.2 




-16.6 


1896.... 


• 99,1 




-26.0 


100.1 


—1.8 


97.0 




-16.8 


1897.... 


105.0 




-19.0 


99.9 


—1.6 


97.4 




-16.3 


1898.... 


107.6 




-16.1 


99.8 


—1.5 


99.4 




-14.0 


1899.... 


111.3 




-12.2 


99.8 


-1.5 


102.2 




-10.9 


1900.... 


115.5 




- 8.1 


99.5 


—1.2 


104.4 




-8.5 


1901.... 


118.7 




- 5.2 


99.1 


— .8 


106.5 




-6.4 


1902.... 


123.6 




- 1.1 


98.4 




109.5 




h 3.5 


1903.... 


124.9 




98.3 




113.3 













Taken all in all the preceding figures show that, as far as 
wages and employment are concerned, this country has never 
seen such an era of prosperity as that which was inaugurated 
when industry was enabled to adjust itself to the stable con- 
servative protective policy of the present administration. Never 
in modern times has employment been as secure and general, and 
never in the history of the country have wages been as high as 
during the past few years. 



WAGES AND COST OF LIVING. 

Comparison of Day Wages with Retail Prices In 1896 and 1903 — A 

Day's Wages Will Buy More of the Requirements of Dally 

Life Now Than in 1896 — Labor Bureau Figures. 

The claim is often made that while wages have advanced they 
have not kept pace with the increased cost of living. The ab- 
solute falsity of this assertion is readily shown by a study of 
retail prices of articles of daily requirement, as published in the 
United States Bureau of Labor Bulletin No. 53, in connection with 
the wages paid in leading occupations. This bulletin was issued 
in July, 1904, and thus contains the very latest available data on 
the subject. It is there stated that this is the first extended in- 
vestigation covering a long series of years that has been made 
into retail prices in this country. All previous collections of 
price data covering a period of years have dealt solely with 
wholesale prices which, of course, do not represent accurately or 
even approximately the cost to the small consumer. The figures 
collected by the Bureau of Labor were secured by its agents di- 
rectly from the books of account of over 800 retail merchants 
whose patrons largely belong to the class of small consum- 
ers. Covering actual sales in all parts of • the country the 
figures may, therefore, be considered thoroughly representative 
as well as trustworthy. A comparative study of these figures 
and those for wages just given shows that the increased 
wages of bricklayers, carpenters, hod carriers, iron molders, 
laborers, stone masons, house painters, plumbers, stone cutters, 
etc., have not only kept pace with food prices, but that they 
have risen much more, and that a day's wages of workingmen in 
these occupations can purchase much more food in 1003 than in 
1896. Even if it were not so, and if wages and prices had in- 
creased in the same proportion it must not be forgotten that with 
such higher wages and prices the difference between the income 
and expenditures is greater in actual dollars and cents. 
For instance, if a workingman earned $700 per year 
in 1896 and expended $600 he would save $100. If in 
1903 both the wages and prices had increased 15 per cent., his 
wages would then be $805, and his expenditures $690, and his 
sayings, in consequence, would be $115. As a matter of fact, 



LABOR, WAGES, AND PRICES. 



209 



however, wage rates in the leading occupations have increased 
more than prices, and not only have the wage rates increased, but 
those employed have had much more constant employment in 
1903 than in 1896. 

In the Bureau of Labor report the average price of each com- 
modity as a whole could not be stated in dollars and cents 
because the articles for which retail prices were shown vary more 
or less as to kind and quality in different localities. The aver- 
ages have, therefore, been computed on a percentage repre- 
sented as 100, or the base, and the prices from year to year being 
indicated by relative figures. 

These relative figures consist of a series of percentages show- 
ing the per cent the price in each year was of the average price 
for the ten-year period from 1890 to 1899. This average price 
for the ten-year period was selected as the base because it repre- 
sented the average conditions more nearly than the price in 
any one year which might be selected as a base for all articles. 
The following table shows the relative price of the 30 principal 
articles of food considered in the Bureau of Labor Bulletin. In 
order to miake clear the manner of using the relative figures we 
take, for example, the column showing the figures for "Beef, 
fresh roasts and stews"; it is seen that the price in 1890 was 
99.5 per cent of the average price for the period from 1890 to 
1899. In 1891 the price was exactly the average price for the 
ten-year period— that is, 100.0. The lowest point reached was 
in 1894, when the price was 98.3 per cent of the average price 
for the ten-year period. The highest point reached was in 
1902, when it stood at 118.6, or 18.6 per cent higher than the 
average price for the base period, 1890 to 1899. In 1903 a consid- 
erable decline from the price in 1902 is seen, the relative price 
being 113.1, or 13.1 per cent higher than the price for the base 
period. The table follows: 

Relative retail prices of the principal articles of food, 1890 to 1903. 
[Average 1890-1899-100.0.] 



Year. 


Ap- 
ples, 
evapo- 
rated. 


Beans, 
dry. 


Beef, 
fresh, 
roasts 

and 
stews. 


Beef, 
fresh, 
steaks. 


Beef, 

salt. 


Bread, 
wheat. 


But- 
ter. 


Cheese. 


Chick- 
ens. 


Cof- 
fee. 


1890. . . . 


109.0 


103.3 


99.5 


98.8 


97.5 


100.3 


99.2 


98.8 


101.3 


105.4 


1891.... 


110.3 


106.2" 


100.0 


99.4 


98.3 


100.3 


106.4 


100.3 


104.0 


105.2 


1892.... 


99.3 


102.4 


99.6 


99.3 


99.5 


100.3 


106.8 


101.5 


103.8 


103.8 


1893.... 


107.0 


105.0 


99.0 


99.6 


100.3 


100.1 


109.9 


101.8 


104.2 


104.8 


1894. . . . 


105.8 


102.8 


98.3 


98.2 


98.9 


99.9 


101.7 


101.6 


98.6 


103.3 


1895.... 


97.4 


100.5 


98.6 


99.1 


99.6 


99.7 


97.0 


99.2 


98.4 


101.7 


1896.... 


88.6 


92.7 


99.1 


99.5 


99.8 


99.9 


92.7 


97.9 


97.1 


99.6 


1897.... 


87.8 


91.5 


100.3 


100.2 


100.9 


100.0 


93.1 


99.0 


94.0 


94.6 


1898.... 


95.4 


95.9 


101.7 


102.0 


102.1 


99.8 


95.1 


97.5 


96.8 


91.1 


1899. . . . 


99.5 


99.7 


103.7 


103.9 


103.2 


99.6 


97.7 


102.4 


101.8 


90.5 


1900.... 


95.2 


110.0 


106.5 


106.4 


103.7 


99.7 


101.4 


103.9 


100.8 


91.1 


1901.... 


96.8 


113.9 


110.7 


111.0 


106.1 


99.4 


103.2 


103.3 


103.0 


90.7 


1902. . . . 


104.4 


116.8 


118.6 


118.5 


116.0 


99.4 


111.5 


107.3 


113.2 


89.6 


1903. . . . 


100.8 


118.1 


113.1 


112.9 


108.8 


100.2 


110.8 


109.4 


118.5 


89.3 



Year. 


Corn 

meal. 


Eggs. 
100.6 


Fish. 
fresh. 


Fish, 

salt. 


Flour 

wheat. 


Lard. 


Milk, 
fresh. 


Mo- 
lasses. 


Mutton 

and 

lamb. 


Pork, 

fresh. 


1890.... 


100.0 


99.3 


100.7 


109.7 


98.2 


100.5 


104.7 


100.7 


97.0 


1891.... 


109.7 


106.9 


99.6 


101.7 


112.5 


99.8 


100.5 


101.7 


100.6 


98.7 


1892.... 


105.2 


106.8 


100.1 


102.2 


105.1 


103.6 


100.6 


101.2 


101.0 


100.5 


1893. . . . 


103.1 


108.1 


100.1 


103.4 


96.1 


117.9 


100.4 


100.6 


99.9 


107.0 


1894.... 


102.2 


96.3 


100.4 


101.5 


88.7 


106.9 


100.2 


100.3 


97.8 


101.8 


1895.... 


100.8 


99.3 


99.8 


98.9 


89.0 


100.1 


100.0 


99.0 


98.7 


99.7 


1896.... 


95.0 


92.8 


100.2 


97.5 


92.7 


92.5 


99.9 


98.7 


98.7 


97.4 


1897.... 


93.7 


91.4. 


99.8 


95.2 


104.3 


89.8 


99.7 


97.7 


99.6 


97.6 


1898.... 


95.0 


96.2 


100.5 


98.8 


107.4 


93.9 


99.4 


97.9 


100.4 


98.6 


1899.... 


95.1 


101.1 


100.2 


100.2 


94.6 


97.1 


98.9 


98.2 


102.6 


101.7 


1900.... 


97.4 


99.9 


100.4 


99.1 


94.3 


104.4 


99.9 


102.2 


105.6 


107.7 


1901.... 


107.1 


105.7 


101.4 


100.9 


94.4 


118.1 


101.1 


101.3 


109.0 


117.9 


1902.... 


118.8 


J 19.1 


105.0 


102.8 


94.9 


134.3 


103.3 


102.1 


114.7 


128.3 


1903.... 


120.7 


125.3 


107.3 


108.4 


101.2 


126.7 


105.8 


103.8 


112.6 


127.0 



210 



LABOR, WAGES, AND PRICES. 







Pork. 




















Pork. 


salt. 


Pork. 


Pota- 












Vin- 
egar. 


Year. 


salt 


dry or 


salt 


toes, 


Prunes 


Rice. 


Sugar. 


Tea. 


Veal. 




bacon. 


pick- 


ham. 


Irish. 
















eted. 


















1890.... 


95.8 


95.3 


98.7 


109.3 


116.8 


101.3 


118.6 


100.0 


98.8 


102.9 


1891.... 


96.6 


98.9 


99.3 


116.6 


11«.5 


102.5 


102.7 


100.4 


99.6 


105.5 


1892. . . . 


99.1 


100.5 


101.9 


95.7 


1M.5 


101.3 


96.2 


100.2 


100.0 


102.7 


1893.... 


'109.0 


108.7 


109.3 


112.3 


115.6 


98.4 


101.5 


100.1 


100.0 


99.5 


1894.... 


103.6 


103.4 


101.9 


102.6 


100.9 


99.0 


93.8 


98.7 


98.7 


99.8 


1895.... 


99.4 


99.2 


98.8 


91.8 


94.2 


98.8 


91.8 


98.5 


98.5 


98.9 


1896.... 


96.7 


95.5 


97.6 


77.0 


86.8 


96.7 


96.6 


98.8 


99.5 


97.2 


1897.... 


97.4 


97.3 


98.2 


93.0 


84.3 


97.9 


95.7 


98.5 


99.9 


97.4 


1898.... 


100.2 


99.1 


95.1 


105.4 


86.3 


101.7 


101.3 


100.7 


101.2 


97.9 


1899.... 


102.9 


101.8 


99.2 


96.1 


85.1 


102.4 


101.7 


104.4 


103.7 


98.3 


1900.... 


109.7 


107.7 


105.3 


93.5 


83.0 


102.4 


104.9 


105.5 


104.9 


98.5 


1901.... 


121.0 


117.5 


110.2 


116.8 


82.6 


103.5 


103.0 


106.7 


108.8 


98.9 


1602.... 


135.6 


132.5 


119.4 


117.0 


83.4 


103.5 


96.0 


107.2 


115.2 


99.5 


1903.... 


139.8 


129.0 


121.3 


114.8 


80.2 


103.9 


96.1 


106.0 


114.9 


99.1 



The following table shows the relative prices of food, consid- 
ered as a whole, for each year. The prices are "weighted" ac- 
cording to the importance of each article in family consumption, 
the degree of importance having been determined by a special 
inquiry covering over 2,500 families. In the computation of a 
"simple average" for all food the same importance is given to 
each article, flour, for example, being given the same weight 
as cheese. To overcome the unfairness of such an average, the 
exact quantity of each commodity of food used was ascertained 
and each commodity was then given its proper importance as 
an article of consumption- The result is the "weighted" average 
given. It should be stated in this connection, however, that the 
weighted average as shown does not differ materially from the 
simple average. The last line of the table shows the per cent 
of increase or decrease (indicated by or — ) in 1903 as com- 
pared with each of the preceding years. 

Relative retail prices of all food each year from 1890 to 1903 and 
per cent of increase or decrease in 1900 as compared with pre- 
vious years. 

[Average 1890-1899-100.0.] 



Year. 



Relative prices of 
all foods. 



Per cent of increase (+) 
or decrease ( ) in 1903 
as comp a r e d with 
years specified. 



1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 



102.4 

103.8 

101.9 

104.4 

99.7 

97.8 

95.5 

96.3 

98.7 

100.1 

101.1 

105.2 

110.9 

110.3 



■ 7.7 
6.3 
8.2 
5.7 
10.6 
12.8 
15.5 
14.5 
11.8 
10.9 
9.1 
4.8 



The method of using both the relative figures and the per- 
centages has already been explained. The important facts dis- 
closed in this table are that food was lower in 1903 than in 1902, 
and that food was only 15.5 per cent higher in 1903 than in 
1896— the year of lowest prices. The changes in the cost of liv- 
ing, as shown by the Bulletin of the Bureau of Labor, relate to 
food alone, representing 42.54 per cent of all family expenditures 
in the 2,567 families furnishing information. With respect to 
the remaining expenditures of the average family the Bulletin 
states as follows: 

Of the remaining articles, constituting 57.46 per cent of the 
family expenditure, certain ones are, from their nature, affected 
only indirectly and in very slight degree by any rise or fall in 
prices. Such are payments on account of principal and interest 
of mortgage, taxes, property and life insurance, labor and other 
organization fees, religion, charity, books and newspapers, amuse- 



LABOB, WAGES, AND PBICES. 211 

ments and vacations, intoxicating liquors, and sickness and death. 
These together constituted 14.51 per cent of the family expenditure 
in 1901 of the 2,567 families investigated. Miscellaneous purposes, 
not reported, for which, from their very character, no prices are 
obtainable, made up 5.87 per cent, and rent, for which also no 
prices for the several years are available, made up 12.95 per cent. 

The remaining classes of family expenditure, 24.13 per cent of 
all, consist of clothing 14.04 per cent, fuel and lighting 5.25 per 
cent, furniture and utensils 3.42 per cent, and tobacco 1.42 per 
cent. For these no retail prices covering a series of years are 
available, but it is probable that the advance of the retail prices 
was considerably less than the advance in wholesale prices, as the 
advance in the wholesale prices of 25 articles of food in 1903, as 
compared with 1896, was 27.9 per cent, while the advance in the 
retail prices of 25 similar articles or groups of articles, as shown 
by the results of this investigation, was but 15.3 per cent. An 
examination of the relative wholesale prices of these classes of 
articles in Bulletin No. 51, giving them their proper weight ac- 
cording to family consumption, leads to the conclusion that the 
retail prices of these articles as a whole in 1903 could have been 
but little, if at all, above the level indicated by food. 

If all classes of family expenditures as above be taken into 
consideration, it is apparently a safe and conservative conclusion, 
therefore, that the increase in the cost of living, as a whole, in 
1903, when compared with the year of lowest prices, ivas less than 
15.5 per cent, the figure given above as the increase in the cost of 
food as shown by this investigation. It is shown on the succeed- 
ing pages that the increase in wages in 1903 over the year of lowest 
wages, as shown by the same bulletin of the Bureau of Labor, was 
greater than the increase in cost of living, being 18.8 per cent. 

A comparison of the table showing prices with that on page 
204 entitled "Per cent of increase or decrease in the average 
wages per hour in 13 leading occupations in 1903 compared with 
each preceding year discloses the following interesting facts: 

Bricklayers' wages advanced 26.1 per cent from 1896 to 1903 ; 
carpenters' wages, 31.2 per cent; hod carriers' wages, 22.6 per 
cent ; iron molders' wages, 21.1 per cent ; laborers' wages, 18.4 per 
cent; stone masons' wages, 26.5 per cent; painters' wages, 25.8 
per cent; plumbers' wages, 24.7 per cent; stone cutters' wages, 
17.7 per cent, etc.— while during the same period the retail prices 
of fresh beef roasts increased 14.1 per cent; beef steaks, 
13.5 per cent; salt beef, 9 per cent; bread, 0.03 per 
cent; butter, 19.5 per cent; cheese, 11.7 per cent; fresh 
fish, 7.1 per cent; salt fish, 11.2 per cent; wheat flour 
9.2 per cent; fresh milk, 5.9 per cent; molasses, 5.2 
per cent; mutton and lamb, 14.1 per cent; rice, 7.4 per cent; 
tea, 7.3 per cent; veal, 15.5 per cent; and coffee has decreased 
10.3 per cent and sugar 0.5 per cent. All food of ordinary con- 
sumption has increased an average of 15.5 per cent. Pork prod- 
ucts, which are included in this general average, advanced from 

24.3 to 44.6 per cent, owing to the high price of hogs, the whole- 
sale price of which advanced 75.22 per cent from 1896 to 1903, 
as is shown in the chapter on the exchange value of farm products 
beginning page 216. 

By measuring the purchasing power of a day's wages of these 
various articles of food in 1896 and in 1903 a very interesting 
result is obtained. 

In the case of a bricklayer it shows that for a day's wages 
in 1903, as compared with a day's wages in 1896, he could buy 

10.4 per cent more beet roasts or stews ; 11.1 per cent more beef 
steak; 15.6 per cent more salt beef; 25.7 per cent more wheat 
bread ; 5.5 per cent more butter ; 12.8 per cent more cheese ; 40.6 
per cent more coffee ; 17.7 per cent more fresh fish ; 13.4 per 
cent more salt fish ; 15.5 per cent more wheat flour ; 19.1 per 
cent more fresh milk ; 19.9 per cent more molasses ; 10.5 per cent 
more lamb and mutton ; 17.3 per cent more rice ; 26.7 per cent 
more sugar ; 17.5 per cent more tea ; 9.1 per cent more veal, and 
8.9 per cent more of the 30 food commodities taken collectively. 

A carpenter could buy for a day's wages in 1903, as compared 
with 1896, 14.9 per cent more beef roasts or stews ; 15.6 per cent 
more beef steak ; 20.3 per cent more salt beef ; 30.7 per cent more 
wheat bread; 9.7 per cent more butter; 17.3 per cent more 



213 LABOR, WAGES, AND PRICKS. 

cheese; 46.2 per cent more coffee; 22.4 per cent more fresh fish; 
1T. ( .> per cent more salt fish; 20.1 per cent more wheat flour; 
2&8 per cenl more fresh milk; '_• i.<; per cent more molasses; L4.8 
per cenl more lamb and mutton; •->•_'.<) per cent more rice; 31.8 
per cent more sugar; 22.3 per cent more tea; 13.5 per cent more 
veal, and 13.3 per cent more of the 30 food commodities taken 
collectively. 

A ilay laborer could buy for a day's wages in 1903, as com- 
pared with 189G, 3.7 per cent more beef roasts or stews; 4.3 
per cent more beef steak; 8.5 per cent more salt beef; 18.0 per 
(tut more wheat bread; 5.9 per cent more cheese; 32.4 per cent 
more coffee; 10.5 per cent more fresh fish; G.4 per cent more salt 
fish.; 8.3 per cent more wheat flour; 11.7 per cent more fresh 
milk; 12.0 per cent more molasses; 3.8 per cent more lamb and 
mutton; 10.1 per cent more rice; 19.0 per cent more sugar; 10.3 
per cent more tea ; 2.5 per cent more veal, and 2.2 per cent more 
of all the 30 articles of food taken collectively. 

A painter could buy for a day's wages in 1903, as com- 
pared with 1896, 10.3 per cent more beef roasts or stews ; 11.0 per 
cent more beef steak ; 15.4 per cent more salt beef ; 25.5 per cent 
more wheat bread ; 5.3 per cent more butter ; 12.7 per cent more 
cheese; 40.3 per cent more coffee; 17.6 per cent more fresh fish; 
13.2 per cent more salt fish ; 15.3 per cent more wheat flour ; 18.9 
per cent more fresh milk ; 19.7 per cent more molasses ; 10.4 per 
cent more lamb and mutton; 17.2. per cent more rice; 26.6 per 
cent more sugar; 17.3 per cent more tea; 9.0 per cent more 
veal, and 8.7 per cent more of all the 30 articles of food taken 
as a whole. 

An iron molder could buy for a day's wages in 1903, as com- 
pared with 1896, 6.2 per cent more beef roasts or stews; 6.8 per 
cent more beef steak ; 11.1 per cent more salt beef ; 20.8 per cent 
more wheat bread ; 1.4 per cent more butter ; 8.4 per' cent more 
cheese ; 35.1 per cent more coffee ; 13.1 per cent more fresh fish ; 
9.0 per cent more salt fish ; 11.0 per cent more wheat flour ; 14.4 
per cent more fresh milk ; 15.2 per cent more molasses ; 6.2 per 
cent more lamb and mutton ; 12.8 per cent more rice ; 21.8 per 
cent more sugar; 12.9 per cent more tea; 4.9 per cent more 
veal, and 4.7 per cent more of all the 30 articles of food taken 
as a whole. 

A plumber could buy for a day's wages in 1903, as compared 
with 1896, 9.3 per cent more beef roasts and stews ; 9.9 per cent 
more beef steaks ; 14.4 per cent more salt beef ; 24.2 per cent 
more wheat bread; 4.4 per cent more butter; 11.6 per cent more 
cheese ; 39.1 per cent more coffee ; 16.5 per cent more fresh fish ; 

12.2 per cent more salt fish ; 14.6 per cent more wheat flour ; 17.6 
per cent more fresh milk ; 18.6 per cent more molasses ; 9.3 per 
cent more lamb and mutton ; 16.1 per cent more rice ; 25.4 per 
cent more sugar ; 16.2 per cent more tea ; 8.0 per cent more veal ; 
7.6 per cent more of all the 30 articles of food taken collectively. 

A stone cutter could buy for a day's wages in 1903, as com- 
pared with 1896, 3.1 per cent more beef roasts and stews ; 3.7 
per cent more beef steaks; 7.9 per cent more salt beef; 17.3 per 
cent more wheat bread; 5.3 per cent more cheese; 31.2 per cent 
more coffee; 9.9 per cent more fresh fish; 5.8 per cent more salt 
fish ; 7.8 per cent more wheat flour ; 11.1 per cent more fresh 
milk ; 11.9 per cent more molasses ; 3.2 per cent more lamb and 
mutton; 9.5 per cent more rice; 18.3 per cent more sugar; 9.7 
per cent more tea; 1.9 per cent more veal; 1.7 per cent more of 
all the 30 articles of food taken collectively. 

A stone mason could buy for a day's wages in 1903, as com- 
pared with 1896, 10.7 per cent more beef roasts and stews; 11.4 
per cent more beef steaks; 15.9 per cent more salt beef; 26 per 
cent more wheat bread; 5.8 per cent more butter; 13.1 per cent 
more cheese ; 40.9 per cent more coffee ; 18.0 per cent more fresh 
fish ; 13.6 per cent more salt fish ; 15.5 per cent more wheat flour ; 

19.3 per cent more fresh milk ; 20.2 per cent more molasses ; 10.8 
per cent more lamb and mutton; 17.6 per cent more rice; 27.1 
per cent more sugar; 17.8 per cent more tea; 9.5 per cent more 
veal, and 9.2 per cent more of all the 30 articles of food taken 
collectively. 

Similar comparisons could be made with many more occupa- 
tions, but it is believed that the above, which all relate to leading 



LABOR, WAGES, AND PRICES. 



213 



sine 1 well defined occupations, are sufficient to prove the fallacy 
of the assertion that wages have not kept up with prices since the 
great industrial depression during the last Democratic adminis- 
tration. 

.SUMMARY OP CONCLUSIONS. 

As a summary of the results of the investigations relative to 
wages and cost of living the two following tables are given in 
the Bulletin of the Bureau of Labor. The first shows relative fig- 
ures while the second shows the increase or decrease in the year 
1903 as compared with each preceding year of the period consid- 
ered: 

Relative employees, hours per week, wages per hour, weekly earn- 
ings per employee and for all employees, retail prices of food, 
and purchasing power of hourly wages and of weekly earnings 
per employee measured by retail prices of food, 1890-1903. 
[Average for 1890-1899—100.] 

















Purchasing power 
















measured by 










Weekly 


Weekly 




retail prices of 


Year. 


Em- 


Hours 


Wages 


earnings 
per 


earnings 
of all 


Retail 
prices 


food, of— 


ployees. 


per 


per 








week. 


hour. 


em- 


em- 


of food. 




Weekly 










ployee. 


ployees. 




Hourly 
wages. 


earnings 
per em- 
ployee. 


1890... 


94.9 


100.7 


100.3 


101.0 


95.8 


102.4 


97.9 


98.0 


1891 . . . 


97.4 


100.5 


100.2 


100.7 


98.1 


103.8 


96.5 


97.0 


1892 . . . 


99.1 


100.5 


100.8 


101.3 


100.4 


101.9 


98.9 


99.4 


1893... 


99.2 


100.3 


100.9 


101.2 


100.4 


104.4 


96.6 


96.0 


1894... 


94.1 


99.8 


97.9 


97.7 


91.9 


99.7 


98.2 


98.6 


1895... 


96.3 


100.1 


98.3 


98.4 


94.8 


97.8 


100.5 


100.2 


1896... 


98.3 


99.8 


99.7 


99.5 


97.8 


95.5 


104.4 


104.9 


1897... 


100.9 


99.6 


99.6 


99.2 


100.1 


96.3 


103.4 


103.6 


1898... 


106.3 


99.7 


100.3 


100.0 


106.3 


98.7 


101.6 


101.3 


1899... 


110.8 


99.2 


102.0 


101.2 


112.1 


99.5 


102.5 


101.7 


1900... 


115.5 


98.7 


105.5 


104.1 


120.2 


101.1 


104.4 


103.0 


1901... 


119.1 


98.1 


108.0 


105.9 


126.1 


105.2 


102.7 


100.7 


1902... 


123.6 


97.3 


112.3 


109.3 


135.1 


110.9 


101.3 


98.6 


1903... 


126.4 


96.6 


116.3 


112.3 


141.9 


110.3 


105.4 


101.8 



Note. — In explanation of relative figures it should he stated 
that each figure in the above table represents the per cent which 
the actual figures were of the average figures for the ten-year 
period from 18£0 to 1899, the latter being presumed to represent 
normal conditions more accurately than the figures' for any one 
3*ear. In the first column, for example, the number of employees 
in 1890 is shown to have been 94.9 per cent of the average num- 
ber for the ten-year period; the number in 1894 was 94.1 per cent 
of the average for the ten-year period; the number in 1903 was 
126.4 per cent of the average, or 26.4 per cent, greater than the 
average for the ten-year period, etc., etc. 

The following table, which presents the facts in the convenient 
form of percentages, discloses most important information with 
reference to conditions in 1903 as compared with the period of 
industrial depression which reached its lowest depths during the 
years 1894, 1895, and 1896. 

First. Employment afforded. — As regards the number of em- 
ployees engaged in the 519 occupations, covering 67 important 
industries and 3,429 establishments engaged in the manufactur- 
ing and mechanic*! industries, it is seen that over one-third more 
workmen (34-3 per cent) were employed in 1903 than in 1894, and 
that during the administrations of President McKinley and 
President Roosevelt the number given employment has steadily 
and rapidly increased even up to and including the last year of 
the period, 1903. And even the wonderful increase in 1903 over 
1894 as shown above does not mark the extreme limit of the 
betterment of industrial conditions as regards employment af- 
forded; for it must be remembered that the 3,429 establishments 
covered in the investigation of the Bureau of Labor w T ere prac- 
tically all in operation each year during the entire period and 
the figures secured therefrom do not reflect conditions in hun- 
dreds of important establishments which- were closed entirely 
during the period of depression nor in still other hundreds of new 
establishments which went into operation after the depression 
had been relieved and confidence reestablished. Were figures 



214 



LABOR, WAGES, AND PRICES. 



Per cent of increase (+) or decrease ( — ) in 190S, as compare 
with previous years, in employees, hours per week, wages pi 
hour, weekly earnings per employee and of all employees, retail 
prices of food, and purchasing power of hourly wages and hf 
weekly earnings per employee measured by retail prices of food, 
1890 to 1998. 





Per cent of increase (+) 


or decrease (— ) in 1903 as 








compared with previous years. 
















Purchasing 
















power 
















measured by 










Weekly 


Weekly 


Retail 
prices 


rouiil prices of 


Year. 


Em- 


Hours 


Wages 


earn- 
ings per 


earn- 
ings of 


food, of— 




ployees. 


per 


per 


of 
food. 








week. 


hour. 


em- 


all em- 




Weekly 










ployee. 


ployees. 


Hourly 
Wages. 


earn- 
ings per 
em- 


















ployee. 


Av. 1890-99.. 




-26.4 


—3.4 




-16.3 


H 


hl2.3 




-41.9 




-10.3 




+5.4 


+1.8 


1890.. 




-33.2 


—4.1 




-16.0 


- 


11.2 




-48.1 




-7.7 




+7.7 


+3.2 


1891.. 




-29.8 


—3.9 




-16.1 


- 


11.5 


- 


-44.6 




- 6.3 


+9.2 


+4.9 


1892.. 




-27.5 


—3.9 


- 


-15.4 


H 


-10.9 


- 


-41.3 




- 8.2 


1+6.6 


+2.4 


1893.. 




-27.4 


—3.7 


- 


-15.3 


- 


-11.0 


- 


-41.3 




- 5.7 


-f9.1 


+5.1 


1894.. 




-34.3 


—3.2 




-18.8 


J 


-14.9 


_ 


-54.4 




-10.6 


+7.3 


+3.9 


1895.. 




-31.3 


—3.5 


- 


-18.3 


- 


-14.1 


- 


-49.7 




-12.8 


+4.9 


+1.2 


1896.. 




-28.6 


—3.2 


- 


-16.6 


_ 


-12.9 


- 


-45.1 




-15.5 


+1.0 


—2.3 


1897.. 




-25.3 


—3.0 


_ 


-16.8 




13.2 




-41.8 




-14.5 


+ 1.9 


—1.2 


1898.. 




-18.9 


—3.1 




-16.0 




-12.3 




-33.5 




-11.8 


+3.7 


tl 


1899.. 




-14.1 


—2.6 




-14.0 




-11.0 




-26.6 




-10.9 


+2.8 
+1.0 


1900.. 




- 9.4 


—2.1 




-10.2 


- 


- 7.9 




-18.1 




- 9.1 


—1.2 


1901.. 




- 6.1 


—1.5 




- 7.7 




- 6.0 




12.5 




- 4.8 


+2.6 


+1.1 
+3.2 


1902.. 




h 2.3 


— .7 




- 3.6 




- 2.7 




r 5.0 


— .5 


i +4.0 



Note. — The figures in this table give for each year, and for 
the average of the ten-year period from 1890 to 1899. the per cent 
of increase or decrease (indicated by — and — ) whiph the figures 
for 1903 show as' compared with the year specified. For example, 
the first column shows that the number of employes in 1903 was 
26.4 per cent, greater than the average number in/ the ten-year 
period, 34.3 per cent greater than the number in 1894, 2.3 per cent 
greater than the number in 1902, etc., etc. / 



available showing the thousands of workmen thrbwn into abso- 
lute idleness by the closing down of factories and mills during 
Democratic rule and the thousands given employment during Re- 
publican rule, \he per cent of increase in employees at work in 
1903 over the number shown for 1894 would doubtless be doubte 
that given by the Bureau of Labor for the 3,429 t establishments 
in continuous operation. 

Second. Working Hours. — As regards hours of work in the 
establishments covered, it is seen that almost without a halt the 
workday has gradually been shortened during \he period. The 
average hours worked per week in 1903 were 
than in 1890, 3.5 per cent less than in 1895, 2.1 
in 1900, and .7 per cent less than in 1902. T 
ment of industrial conditions is nowhere better 
figures which indicate that slowly but surely tie hours of labor 
are decreasing and a consequently longer time is afforded the 
workman for rest, recreation, and improvement. 



1 per cent less 
er cent less than 
e general better- 
own than in the 



Third. Hourly Wages. — The table shows quijie conclusively the 
reduction in wages during the years of depression and the gradual 
and rapid increase year by year since 1896. It is seen that the 
hourly wages in 1903 were 16.0 per cent higher 'han in 1890; they 
were in 1903 18.8 per cent higher than in 1894, \he year of lowest 
wages; they were 18.3 per cent higher than in J.895, and 16.6 per 
cent higher than in 1896, etc. It is most interesting to note the 
steady and strong tendency toward higher wagbs during the last 
eight years, nor should the fact be overlooked that the wages of 
1903, the last, year covered, were higher than in any previous year, 
being 3.6 per cent higher than the year 1902. The figures do not 
in any way indicate that a retrograde movement has begun. 

Fourth. Weekly earnings per employee. — It has been stated 
that while hourly wages have increased greatly the daily hours of 
work have gradually decreased. While the decrease in hours has 
doubtless been due to the movement of workmen themselves for a 



LAB0B, WAGES, AND PBICES. 215 

shorter workday, it should be noteu, also that when the decrease 
in hours per week is taken in connection with the increase in 
wages the resulting weekly earnings still show a marked increase 
in 1903 over preceding years. For example, the weekly earnings 
in 1903 were 14-9 per cent greater than in 1894, Uf.l per cent 
greater than in 1895, etc., etc. While the increase as shown above 
is quite considerable, it should be remembered that it does not by 
any means indicate the conditions as to weekly, monthly, or an- 
nual earnings in 1903 as compared with the years of depression, 
inasmuch as the figures given are based on the presumption that 
each employee worked full time. While figures are not available 
showing ihe extent to which establishments worked "half time" 
or "three-quarter time" during the years of depression, or closed 
down entirely, it is safe to say that were it possible to compare 
average ueekly, monthly, or yearly earnings in 1903 with those for 
1894, 189*, and 1896 the per cent of increase in 1903 over the 
latter years would be much greater than that shown in the Bulle- 
tin of the Bureau of Labor, and would reach probably between 
25 and 30 per cent. 

Fifth. Weekly earnings of all employes. — Some impression as 
to the infuence of conditions of employment on the earnings of 
wage-workers may -be gained by reference to the column of the 
table containing the percentages which show the increase (in 1903 
over each preceding year of the period) in the weekly earnings 
of the employees covered by the report. It will be remembered 
that the report covers 67 industries and that these industries are 
represented by a total of 519 distinctive occupations in 3,429 estab- 
lishments—all of which were in operation during each year of the 
entire periol. If the number of workmen employed each year in 
the 519 occupations is considered in connection with their weekly 
earnings, the amount of the weekly pay roll of these workmen for 
each year of the period is readily obtained. While for reasons 
before stated the figures given do not mark the extreme decline 
and advanct in the amount paid out in wages, they are extremely 
suggestive. It is seen that the per cent of the increase in 1903 
over 1894 of the weekly earnings of the workmen employed in the 
two years mentioned reached as much as 54-4 per cent; the in- 
crease in 1903 over 1895 reached ^9.7 per cent; the increase in 
1903 over 189( reached 45-1 per cent h etc., etc. The figures for the 
last eight yeats of the period again show the increasing and almost 
marvelous beterment of conditions during these years and their 
uninterrupted continuance to the last year of the period. 

Sixth. Reail prices of food. — As previously indicated, the 
figures given n this column are stated by the Bureau of Labor to 
fairly represent not only the trend of cost of living so far as food 
is concerned, bit also to mark the possible limits of advance and 
decline in the tost of all articles of family consumption. The re- 
sults are especally important, as they are derived from the first 
comprehensive investigation into retail prices covering a long 
series of years. Heretofore wholesale prices have been used to 
indicate the traid of cost of living, although it was recognized 
that they were nore sensitive to conditions than retail prices, that 
their fluctuation? were considerably greater, and that they could 
not be used to iidicate even approximately the extent of increase 
or decrease fron year to year in cost of living. The collection of 
retail prices whch forms the basis of the figures in the table is, 
therefore, of great value as indicating with great exactness the 
cost of living bated on prices actually paid by the small consumer. 
It is seen that tost of living increased in 1903 over the year of 
lowest prices, 1&6, not more than 15 M per cent; over 1897, 14-5 
per cent; over 1898, 11.8 per cent., etc., etc. It is interesting to 
note in this connection that the cost of living in 1903 was .5 per 
cent less than in 1902 and that the decline in 1903 is the first since 
1896. It is also important to note that while cost of living de- 
clined in 1903, the number of workmen employed, the wages per 
houi, and the earnings per week continued their steady advance. 

Seventh. Purchasing power of wages. — The last two columns 
of the table show the percentages representing the purchasing 
p«wer of wages. The first of the two columns shows the facts for 
lourly wages, while the second shows those for weekly earnings. 



216 



LABOR, WAGES, AND PRICES. 



Considering the retail priced <>f food or cosl of living in connection/ 
with hourly wages, it is shown thai the purchasing power of hourly 
wages in t903 was 9.1 per cent greater than in is<).t, ?'.;? per bent 
r than in t894, '/••' per cent areata- titan in 189$, h.0 pei 
cent greater than in mo..', etc., etc. in other words, an hour'! 
wages in t90S would purchase 9.1 per cent more of the com modi 
ties and. articles entering into the cjbei of living of the workini 

man's fa mil)/ than irould an hour's iruges in 1898, etc.; etc. Tl 
last column, which doeta ool present so accurate a figure for rea- 
sons stated previously in eonneetion with weekly earnings, con- 



bat, con- 
has bene- 



tinns the conclusion justilied by tlie preceding column 
sidering both irages and cost of living the irorki in/man 
filed to a measurable degree from the increase in Wages despite the 
increase in cost of living and shortening of icorking hou 

WJien it is remembered also Hint the betterment of Industrial 
conditions has been greater than the figures indicate in some cases 
as previously explained, that it has extended in manyjdirections 
not covered by the figures and not even, susceptible of iemonstra- 
tion by the statistitcal method, and that the savings of the. work- 
man during a period of high wages, although accompanied by high 
/trices, is considerably greater than during a period of depression, 
it st ( ins a safe and conservative conclusion that at no time in the 
history of this or ang other country has there been Ian era of 
prosperity so productive of material benefit to both tlm working- 
man and the employer as the last eight years of Republican rule. 



retail prices 

an advance 
the sale of 
$151.72 for 



EXCHANGE VALUE OF FARM PRODUCTS 

Prices of Raw Materials Compared with Prices of H^anufactured 
Articles, 1896 and 1903. 

During the last few years, when prices in generll have ad- 
vanced, it is interesting to determine in what degiee the pro- 
ducer of the farm products has been benefited by the/rise. 

The table which follows has been prepared from official figures 
published in Bulletin No. 51 of the United States Biueau of Labor 
and shows the per cent of advance in 1903 as coinpaipd with 1896, 
the commodities being grouped as in the original /source. The 
comparisons are between wholesale prices, as in thfe language of 
the original report "They are more sensitive than 
and more quickly reflect changes in conditions." 

Comparing 1903 with 1896, farm products shox 
of 51.72 per cent, that is for every $100 received frc 
farm products in 1896 the farmer received in 19* 
the same quantity. / 

Food, etc., advanced 27.80 per cent. ; cloths and/clothing, 16.76 
per cent ; fuel and lighting, 43.4 per cent, etc. it is seen that 
the advance in farm products has been from two to four times 
as great as the advance in any of the other groups, except fuel and 
light, and even there the advance. has not been learly as great 
as in farm products. It will likewise be observedjthat the whole- 
sale prices of food have increased much more fhan the retail 
prices, which are considered on pages . 

The purchasing power of farm products in 19$ increased ma- 
terially over 1896. The same quantity of farm 
purchase in 1903 18.17 per cent more food th 
would purchase 29.94 per cent more cloths 
5.99 per cent more of the articles included in the 
lighting; 20.90 per cent more metals and impler 
cent more lumber and building materials; 24. li 
drugs and chemicals ; 26.21 per cent more house nrnishing goods ; 
and 22.07 per cent more of the articles included in the miscel- 
laneous group. \ 

This shows that no one has been benefited by the advand? in 
prices as much as has the farmer; that in 1903 the prick of 
farm products was 51.72 per cent, or more than o>\e-half greyer 
than in 1896; that even when the advance in price oj other arti 
is considered, the purchasing power of farm products in 1903 w 
when compared with other groups of articles, from 5.99 per ce 
to 29.94 per cent greater than in 1896. 



products would 
n in 1896. It 

and clothing ; 

group fuel and 
ents ; 16.74 per 

per cent more 



LABOR, WAGES, AND PRICES. 

The following table shows the comparisons : 



217 



Comparative advance in the price of farm products and other 
groups of commodities, 1903 compared ivith 1896. 

[Compiled from Bulletin No. 51, United States Bureau of I«abor.] 



Group. 


Advance. 


Purchas- 
ing 
power. 




Per cent. 
51.72 
27.80 
16.76 
43.14 
25.51 
29.98 
21.60 
20.21 
24.29 


Per cent. 




18.71 




29.94 




5.99 




20.90 




16.74 




24.78 




26.21 




22.07 








25.66 


20.73 







It is interesting to notice in the tables which follow the com- 
parative advance in the price of certain related commodities. 
The average price in 1903 has been compared with the average 
price in 1896. In practically every case the raw material ad- 
vanced more than the finished products. 

The first table shows that live cattle advanced 19.82 per cent, 
while fresh beef advanced but 12.38 per cent. With the same 
weight of live cattle 6.62 per cent more fresh beef could be pur- 
chased in 1903 than in 1896. 

Hogs advanced 75.22 per cent and smoked hams 34.86 per cent. 
With the same weight of live hogs 29.94 per cent\ more ham could 
be bought, in 1903 than in 1896. 

Sheep which the farmer sells advanced 25.03 per cent, mutton 
which the workingman buys advanced 19.06 per cent. With the 
same weight of sheep 5.2 per cent more mutton could be purchased 
in 1903 than in 1896. 

Corn advanced 78.61 per cent, while corn meal advanced but 
61.11 per cent. With the same quantity of corn 10.86 per cent 
more corn meal could be purchased in 1903 than in 1896. 

Wheat, which the farmer raises, advanced 23.07 per cent, while 
wheat flour for everybody's use advanced 6.47 per cent. That is, 
with the same quantity of wheat 15.59 per cent more pour could 
be purchased in 1903 than in 1896. 

Raw cotton advanced 41.86 per cent, cotton bags 13.76 per 
cent, calico declined 4.00 per cent, cotton flannels advanced 
13.74 per cent, cotton thread 20.58 per cent, cotton yarns 20.32 
per cent, denims 14.16 per cent, drillings 9.68 per cent, ging- 
hams 15.68 per cent, cotton hosiery declined 0.44 per cent, print 
cloths advanced 24.64 per cent, sheetings 13.55 per cent, shirt- 
ings 5.41 per cent, and tickings 8.44 per cent. The average ad- 
vance for cotton goods being but 12.08 per cent against 41.86 per 
cent for the raw cotton. With the same quantity of raw cotton 
26.59 per cent more manufactured cotton goods could be pur- 
chased in 1903 than in 1896. 

Wool shows an advance of 56.23 per cent, blankets (all wool) 
23.39 per cent, broadcloths 38.39 per cent, carpets 20.40 per cent, 
flannels 33.84 per cent, horse blankets (all wool) 29.74 per cent, 
overcoatings (all wool) 27.69 per cent, shawls 20.09 per cent, 
suitings 24.15 per cent, underwear (all wool) 8.31 per cent, 
women's dress goods (all wool) 54.39 per cent, and worsted 
yarns 61.87 per cent. An average advance for woolen goods of 
30.01 per cent, while the raw material — wool — advanced 56.23 
per cent. Or with the same quantity of wool 20.14 per cent more 
manufactured woolen goods could be bought in 1901 than in 1896. 
The following table shows this information in tabular form : 



218 LABOB, WAGES, AND PRICES. 

Comparative advance in price of certain related commodities, 

1903 compared with 1896. 

[Compiled from Bulletin No. 51, United States Bureau of Labor.] 

Cattle 19.82 

Fresh beef 12.38 

Hogs 75.22 

Hams 34.86 

Sheep 25.03 

Mutton 19.06 

Corn 78.61 

Corn meal > 61.11 

Wheat 23.07 

Wheat flour 6.47 

Cotton— Upland Middling 41.86 

Cotton bags 13.76 

Calico a 4.00 

Cotton flannels 13.74 

Cotton thread 20.58 

Cotton yarns 20.32 

Denims 14.16 

Drillings 9.68 

Ginghams 15.68 

Hosiery ( cotton ) a 0.44 

Print cloths 24.64 

Sheetings 13.55 

Shirtings 5.41 

Tickings 8.44 

Average for cotton goods 12.08 

Wool 56.23 

Blankets (all wool) 23.29 

Broadcloths 38.39 

Carpets 20.40 

Flannels 33.84 

Horse blankets (all wool) 29.74 

Overcoatings (all wool) 27.69 

Shawls 20.09 

Suitings 24.15 

Underwear (all wool) 8.31 

Women's dress goods (all wool) 54.39 

Worsted yarns 61.87 • 

Average for woolen goods 30.01 

a Decline. 

Market Value of Farm Products in 1896 and 1903 When Measured 
by the Wholesale Prices of Staple Articles. 

The farmer and stock raiser measures the value of his grain 
and stock not only by the amount of money he will receive per 
bushel or per pound, but also by the value of such articles as he 
must buy for use by his family or on the farm. 

No official retail prices, other than for certain articles of food, 
have been published for recent years, but the United States Bu- 
reau of Labor in its bulletin for March, 1904, published wholesale 
prices of the staple articles in general use. From this publication 
the following tables have been prepared, showing the value of 
corn, wheat, oats, cattle, hogs, and dairy butter in 1896 and 1903 
when measured by the value of other staple articles which the 
farmer must buy. 

While these figures do not represent the actual purchasing 
power (as all the prices are wholesale), yet the figures shown for 
the two years, 1896 and 1903, are in practically the same pro- 
portion as retail prices would show. 

Ten bushels of corn in 1896 was equal in value to 20.9 pounds 
of Rio coffee, while in 1903 it was equal to 82.4 pounds, or about 
four times as much. In 1896 10 bushels of corn was equal in 
value to 56.9 pounds of granulated sugar, in 1903 equal to 
99.2 pounds ; in 1896 equal to 49.1 yards of calico, in 1903 to 91.4 
yards; in 1896 equal to 54.7 yards of ginghams, in 1903 to 83.7 
yards ; in 1896 to 41.5 yards of Indian Head sheetings, in 1903 
to 67.6 yards ; in 1896 to 37.1 yards of Fruit of the Loom shirtings, 
/ 



LABOR, WAGES, AND PRICES. 



219 



in 1903 to 60.1 yards; in 1896 to 19 bushels of stove coal (anthra- 
cite), in 1903 to 26.7 bushels; in 1896 to 24.8 gallons of refined 
petroleum, in 1903 to 33.8 gallons ; in 1896 to 95 pounds of 8-penny 
cut nails, in 1903 to 210 pounds ; in 1896 to 88 pounds of 8-penny 
wire nails, in 1903 to 222 pounds. It must be borne in mind that 
these values are based on the average yearly prices of these ar- 
ticles. 

The comparative values of wheat, oats, cattle, hogs, and dairy 
butter presented in the tables which follow show wonderful in- 
creases and the exchange values of wheat, oats, corn, cattle, and 
hogs during the present year are much greater than during 1903. 

The tables are as follows: 



Value of 10 bushels of corn in 1896 and 1903 when measured by 

the wholesale prices of the following staple articles. 

[Compiled from Bulletin No. 51, United States' Bureau of Labor.] 



Articles. 



1896. 1903 



Coffee, Rio, No. 7 pounds 

Sugar, granulated do . . 

Tea. Formosa, fine do . . 

Shoes, men's calf bal. Goodyear welt pairs. 

Shoes, women's solid grain do . . 

Calico, Cocheco prints yards 

Denims, Amoskeag do . . 

Drillings, brown, Pepperell do . . 

Gingham's, Amoskeag do . . 

Hosiery, men's cotton half hose. 20 to 22 oz pairs . 

Overcoats, chinchilla, cotton warp yards 

Sheetings, bleached, 10-4, Atlantic do.. 

Sheetings, brown, 4-4 Indian head do . . 

Shirtings, bleached. 4-4 Fruit of the Loom do . . 

Suitings, indigo blue, all wool, 14 oz., Middlesex do . . 

Tickings, Amoskeag, A. C. A do . . 

Women's dress goods, cashmere, cotton-warp, 22-inch, Hamilton, 

yards 

Coal, anthracite, stove bushels 

Petroleum, refined. 150° test gallons 

Nails, cut, 8-penny, fence and common pounds 

Nails, wire, 8-penny. fence and common do . . 

Carbonate of lead, (white lead), American, in oil do.. 

Cement, Portland, American barrels 

Plate glass, area, 3 to 5 square feet square feet 

Glassware, tumblers, }$-pint, common 



20.9 
56.9 
10.0 
(a) 
(O 
49.1 
26.1 
45.0 
54.7 
37 

5.9 
15.2 
41.5 
37.1 

2.3 
25.3 

36.3 
19.0 
24.8 
95 
88 
49.9 
1.3 
7.6 
172 



82.4 
99.2 
20.1 

(b) 

(d) 
91.4 
40.9 
74.4 
83.7 
71 
10.2 
21.7 
67.6 
60.1 
3.2 
41.7 

62.2 
26.7 
33.8 

210 

222 
74.9 
2.3 
17.5 

313 



a 1 pair and 1.8 cents over. 
c 3 pairs and 3 cents over. 



b 1 pair and $2.26 over. 
d 5 pairs and 17 cents' over. 



Value of 10 bushels of oats in 1896 and 1903 when measured by 

the wholesale prices of the following staple articles. 

[Compiled from Bulletin No. 51, United States Bureau of Labor.] 



Articles. 



1896. 1903. 



Coffee, Rio. No. 7 pounds. 

Sugar, granulated do 

Tea, Formosa, fine do 

Shoes, men's calf bal., Goodyear welt pairs. 

Shoes, women's solid grain do... 

Calico, Cocheco prints yards. 

Denims. Amoskeag — do... 

Drillings, brown. Pepperell do. . . 

Ginghams. Amoskeag .• do. . . 

Hosiery, men's cotton half hose, 20 to 22 ounce pairs . 

Overcoatings, chinchilla, cotton warp yards. 

Sheetings, bleached, 10-4, Atlantic do. . . 

Sheetings, brown, 4-4, Indian head do. . . 

Shirtings, bleached, 4-4, Fruit of the Loom do 

Suitings, indigo blue, all wool, 14-ounce, Middlesex do. . . 

Tickings. Amoskeag, A. C. A do. . . 

Women's dress goods, cashmere, cotton warp, 22-inch, Hamilton, 



yards. 



Coal, anthracite, stove bushels. 

Petroleum, refined. 150° test gallons. 

Nails, cut, 8-penny, fence and common pounds . 

Nails, wire, 8-penny, fence and common do 

Carbonate of lead, (white lead) American, in oil do 

Cement, Portland, domestic barrels. 

Plate glass, area, 3 to 5 square feet square feet . 

Glassware, tumblers, ji pint, common 



14.6 
39.7 
7.0 
(a) 
(c) 
34.3 
18.2 
31.4 
38.2 
26 
4.1 
10.6 
29.0 
25.9 
1.6 
17.7 

25.3 
13.3 
17.3 



34.8 
0.9 
5.3 

120 



63.3 
76.8 
15.4 

(b) 

(d) 
70.3 
31.4 
57.2 
64.4 
54 

7.8 
16.7 
52.0 
46.2 

2.5 
32.1 

47.8 
20.6 
25.8 

161 

171 
57.6 
1.7 
13.5 



pair. 



a Lacks 60 cents of price of 1 
c 2 pairs and 10 cents over. 



b 1 pair and $1.19 over. 

d 3 pairs and 88 cents over. 



220 



LABOR, WAGES, AND PRICES. 



Value <>{ 10 bushels of wheat In t§96 and 190$ ifihen measured by 
ike wholesale prices of the following staple article*. 

[Compiled from Bulletin No. 51, United States Bureau of Labor.] 



Articles. 



Coffee, Rio. No. 7 pounds 

Sugar, granulated do.. 

Tea. Formosa, fine do . . 

Shoes, men's calf bal., Goodyear welt pairs 

Shoes, women's solid grain do. 

Calico, Cocheco prints yards 

Denims. Amoskeag do . . 

Drillings, brown, Pepperell d< » . . 

Ginghams, Amoskeag do.. . 

Hosiery, men's cotton half hose. 20 to 22 oz pairs 

Overcoatings, chinchilla, cbtton-warp yards 

Sheetings, bleached, 10-4. Atlantic do . . 

Sheetings, brown, 4-4. Indian head do . . 

Shirtings, bleached, 4-4. Fruit of the Loom do.. 

Suitings, indigo blue, all wool, 14 oz, Middlesex., .do.. 

Tickings, Amoskeag, A. C. A do . . 

Women's dress goods, cashmere, cotton-warp, 22-inch, 

Hamilton yards 

Coal, anthracite, stove bushels 

Petroleum, refined 150° test gallons 

Nails, cut. 8-penny, fence and common pounds 

Nails, wire, 8-penny, fence and common do . . 

Carbonate of lead (white lead) , American, in oil . . do . . 

Cement. Portland, American barrels 

Plate glass, area, 3 to 5 square feet square feet 

Glassware, tumblers, JS-pint common 



iv.«;. 



1903. 



52.0 


141.2 


141.5 


170.1 


24.8 


84.4 


(a) 


(b) 
(d) 


(c) 


122.2 


156.6 


64.9 


70.1 


111.9 


127.5 


135.9 


143.5 


92 


121 


14.7 


17.4 


37.7 


37.2 


103.1 


115.9 


92.1 


102.9 


5.6 


5.5 


62.9 


71.5 


90.2 


106.5 


47.3 


45.8 


61.7 


57.9 


236.1 


359.6 


219.2 


380.5 


• 124.0 


128.4 


3.2 


3.9 


18.9 


30.1 


427 


537 



a 2 pairs and $1.61 over. 
c 7 pairs and 56 cents' over. 



b 3 pairs and 85 cents over, 
d 8 pairs and 80 cents over. 



Value of cattle (good to extra steers) per 100 pounds in 1896 and 
1903 when measured by the ivholesale prices of the following 
staple articles. 

[Compiled from Bulletin No. 51, United States Bureau of Labor.] 



Articles. 



Coffee, Rio, No. 7 pounds.. 

Sugar, granulated do — 

Tea, Formosa, fine do — 

Shoes, men's calf bal., Goodyear welt pairs.. 

Shoes, women's solid grain do — 

Calico, Cocheco prints yards.. 

Denims, Amoskeag do.. .. 

Drillings, brown, Pepperell do. . . . 

Ginghams, Amoskeag do — 

Hosiery, men's cotton half hose. 20 to 22 oz pairs. . 

Overcoatings, chinchilla, cotton- warp yards.. 

Sheetings, bleached. 10-4, Atlantic do.... 

Sheetings, brown, 4-4 Indian head do — 

Shirtings, bleached, 4-4 Fruit of the Loom do — 

Suitings, indigo blue, all wool, 14 oz. Middlesex . . . do — 

Tickings, Amoskeag, A. C. A. do — 

Women's dress goods, cashmere, cotton-warp, 22-inch, 

Hamilton yards.. 

Coal, anthracite, stove bushels.. 

Petroleum, refined, 150° test gallons . . 

Nails, cut, 8-penny. fence and common pounds . . 

Nails, wire, 8-penny, fence and common do — 

Carbonate of lead (white lead), American, in oil.. do — 

Cement, Portland, American barrels. . 

Plate glass, area, 3 to 5 square feet square feet . . 

Glassware, tumblers, M-pint, common 




a 1 pair and $2.03 over. 

c 5 pairs and 18 cents over. 



b 2 pairs and 61 cents over, 
d 5 pairs and 88 cents over. 



Above all thing's we should avoid the demagague as a pes- 
tilence, and take counsel only of reason and right. — Hon. C. W. 
Fairbanks, at St. Paul, Minn., August 31, 1903. 



For years the commerce of the world has demanded an isth- 
mian canal, and recent events give us the assurance that this vast 
undertaking will be accomplished at an early day under the pro- 
tection of the American flag. — Hon. C. W. Fairbanks, at St. Paul, 
Minn., August 31, 1903. 



LABOR, WAGES, AND PRICES. 



221 



Value of hogs (heavy) per 100 pounds in 1896 and 1903 when meas- 
ured by the wholesale prices of the following staple articles. 

[Compiled from Bulletin No. 51, United States Bureau of Labor.] 



Articles. 



1896. 



Coffee. Rio, No. 7 pounds. 

Sugar, granulated do — 

Tea, Formosa, fine : ... do ... . 

Shoes, men's calf bal. , Goodyear welt pairs . . 

Shoes, women's solid grain do 

Calico, Cocheco prints yards . . 

Denims, Amoskeag do — 

Drillings, brown, Pepperell do ... . 

Ginghams, Amoskeag do — 

Hosiery, men's cotton half hose, 20 to 22 oz pairs . . 

Overcoatings, chinchilla, cotton-warp yards . . 

Sheetings, bleached, 10-4, Atlantic do — 

Sheetings, brown, 4-4. Indian head do — 

Shirtings, bleached, 4-4. Fruit of the Loom do — 

Suitings, indigo blue, all wool, 14 oz. . Middlesex do — 

Tickings. Amoskeag, A. C. A do — 

Women's dress goods, cashmere, cotton-warp, 22-inch, Ham- 
ilton yards . . 

Coal, anthracite, stove bushels . . 

Petroleum, refined, 150° test gallons . . 

Nails, cut. 8-penny , fence and common pounds . . 

Nails, wire, 8-penny, fence and common do — 

Carbonate of lead (white lead), American, in oil do — 

Cement, Portland, American barrels . . 

Plate glass, area, 3 to 5 square feet square feet . . 

Glassware, tumblers, ji-pint, common 



27.2 


108.4 


74.1 


130.5 


13.0 


26.4 


(a) 


(b) 
(d) 


(c) 


64.0 


120.2 


34.0 


53.7 


58.6 


97.9 


71.1 


110.1 


48 


93.0 


7.7 


13.4 


19.8 


28.5 


54.0 


88.9 


48.2 


79.0 


3.0 


4.2 


33.0 


54.9 


47.2 


81.7 


24.8 


35.2 


32.3 


44.4 


124 


276 


115 


292 


64.9 


98.5 


1.7 


3.0 


9.9 


23.1 


224 


412 



1 pair and 96 cents over. 
3 pairs and 81 cents over. 



b 2 pairs' and $1.36 over. 
d 6 pairs and 73 cents over. 



Value of 20 pounds of butter (New York State dairy) in 1896 and 
1903 when measured by the wholesale prices of the follow- 
ing staple articles. 



[Compiled from Bulletin No. 51, United States Bureau 


of Labor.] 


Articles. 


1896. 


1903. 


Coffee, Rio No. 7 


pounds .